Nelson v Greening & Sykes (Builders) Ltd

Nelson v Greening & Sykes (Builders) Ltd

The Court of Appeal held that Mr Nelson held the property as trustee for Ms Hanley at all material times, satisfying the requirements for a charging order under section 2(1)(b)(i) of the Charging Orders Act 1979. The court further held that Ms Hanley, as the real party in interest who funded and directed the litigation, was properly subject to a non-party costs order. The court also found that the judge had discretion to order Ms Hanley to pay costs already assessed against Mr Nelson, given their close identification and her involvement throughout the litigation.

Parties
Appellant/claimant: David Nelson; Respondent/defendant: Greening & Sykes (Builders) Limited; Appellant/interested Party: Shirene Hanley
Jurisdiction
England and Wales
Judgment Date
18 December 2007
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal
Outcome
Appeals dismissed
Legal Topics
Charging Orders, Non Party Costs Orders, Trustee and Beneficiary Liability, Specific Performance, Costs Assessment

Case Brief

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Parties

David Nelson

Appellant/claimant

Greening & Sykes (Builders) Limited

Respondent/defendant

Shirene Hanley

Appellant/interested Party

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division) to Court of Appeal

  1. 1 Whether a charging order could be imposed on property held by a nominee as trustee for a third party under section 2(1)(b)(i) of the Charging Orders Act 1979
  2. 2 Whether a non-party costs order could be made against a beneficiary who funded litigation conducted by a nominee
  3. 3 Whether the beneficiary was entitled to a fresh assessment of costs already assessed against the nominee

Ratio Decidendi

The Court of Appeal held that Mr Nelson held the property as trustee for Ms Hanley at all material times, satisfying the requirements for a charging order under section 2(1)(b)(i) of the Charging Orders Act 1979. The court further held that Ms Hanley, as the real party in interest who funded and directed the litigation, was properly subject to a non-party costs order. The court also found that the judge had discretion to order Ms Hanley to pay costs already assessed against Mr Nelson, given their close identification and her involvement throughout the litigation.

Court Disposition

Appeals dismissed

Orders

  • Charging order against the property upheld
  • Non-party costs order against Ms Hanley affirmed for previously assessed costs