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Non party costs application successfully resisted in Wolf Rock (Cornwall) Ltd v Langhelle [2020] EWHC 2500

24th November 2020

Non party costs application successfully resisted in Wolf Rock (Cornwall) Ltd v Langhelle [2020] EWHC 2500

 

Charlotte Davies (2007) has been successful in defending the director of an appellant Company from a costs order, following conclusion of the High Court appeal against a Winding Up Order made in December 2019. 

 

Wolf Rock (Cornwall) Ltd failed in its appeal before HHJ Matthews to overturn the Order, made following proceedings brought by Ms Langhelle. The Respondent then sought to have a costs order made against the director personally, on the basis that he was either a party to proceedings or on a non party costs order basis pursuant to s.51 Senior Courts Act 1981.

 

Charlotte Davies, on behalf of the Appellant, argued that the director had never been added to proceedings and so was not a party. The director, at the point of filing the appeal, had applied for a stay - but in his capacity as a creditor of the company. No order had been made adding him as a party at that or any other stage.

 

It was further argued that it was not appropriate circumstances for the making of a non party costs order whereby a director was acting in the best interests of the company, citing Dymocks Franchise Systems (NSW) Pty v Todd [2004] 1 WLR 2807.

 

Referring to Housemaker Services Ltd v Cole [2017] Bus LR 1935, HHJ Matthews accepted submissions on behalf of the Appellant and rejected the Respondent's application. The Judge agreed that there had to be more than simply the funding of the appeal, and standing to benefit from a successful appeal by virtue of being a director and shareholder. As such it was ordered that the Appellant shall pay the Respondent's costs, with those costs being in the liquidation.

 

Charlotte Davies acted for the Appellant and was instructed by DKLM LLP.

 

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Non party costs application successfully resisted in Wolf Rock (Cornwall) Ltd v Langhelle [2020] EWHC 2500