Patel v Barlows & Ors (No. 2)

Patel v Barlows & Ors (No. 2)

The Second Defendants’ conduct before and during proceedings justified indemnity costs against them; the Claimants are entitled to recover costs of the claim against Barlows from the Second Defendants; the Second Defendants are not entitled to indemnity from the bankrupt’s estate for their costs due to their unreasonable conduct; no interest is payable on the Claimants’ Advance; the First Claimant is not precluded from bringing fresh proceedings for breach of duty but no express liberty is granted; permission to appeal is refused as there is no real prospect of success.

Parties
First Claimant: Pravin Patel; Second Claimant: Nalini Patel; Second Defendants: Paul Stanley and Paul Barber (as joint trustees in bankruptcy of Drupad Chorera); First Defendant: Barlows Solicitors (a firm); Third Defendant: Mr Nirmal Tanna
Jurisdiction
England and Wales
Judgment Date
20 October 2020
Procedural Posture
Civil Chancery/business / Post Judgment Orders and Costs Determination
Outcome
Orders made on costs, payment on account, and refusal of permission to appeal; directions for account and inquiry; refusal of certain requested provisions.
Legal Topics
Costs, Indemnity Costs, Bankruptcy, Trustee Duties, Partnership, Relief From Sanctions
Civil Procedure Insolvency Trusts Costs Indemnity Costs Bankruptcy Trustee Duties Partnership +1 more

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Parties

Pravin Patel

First Claimant

Nalini Patel

Second Claimant

Paul Stanley and Paul Barber (as joint trustees in bankruptcy of Drupad Chorera)

Second Defendants

Barlows Solicitors (a firm)

First Defendant

Mr Nirmal Tanna

Third Defendant

Procedural Posture

Civil Chancery/business / Post Judgment Orders and Costs Determination

Legal Issues

  1. 1 Whether the Second Defendants are entitled to just allowances in the partnership account and inquiry
  2. 2 Whether the First Claimant can bring fresh proceedings for breach of duty against the Second Defendants
  3. 3 Whether interest is payable on the Claimants’ Advance

Ratio Decidendi

The Second Defendants’ conduct before and during proceedings justified indemnity costs against them; the Claimants are entitled to recover costs of the claim against Barlows from the Second Defendants; the Second Defendants are not entitled to indemnity from the bankrupt’s estate for their costs due to their unreasonable conduct; no interest is payable on the Claimants’ Advance; the First Claimant is not precluded from bringing fresh proceedings for breach of duty but no express liberty is granted; permission to appeal is refused as there is no real prospect of success.

Court Disposition

Orders made on costs, payment on account, and refusal of permission to appeal; directions for account and inquiry; refusal of certain requested provisions.

Orders

  • Second Defendants to pay Claimants’ costs of the Claim and Expenses Application on the indemnity basis, including costs of the claim against Barlows.
  • Payment on account of costs fixed at £100,000.