Bournemouth & Boscombe Athletic Football Club Ltd v Lloyds TSB Bank Plc

Given Mr Pack's role in initiating and conducting hopeless litigation on behalf of an insolvent company, after being warned of personal cost consequences, and using his status as director to circumvent restrictions on rights of audience, the circumstances are sufficiently exceptional to justify making him personally liable for the Bank's costs of the unsuccessful appeal.

Parties: Claimant/respondent: Bournemouth & Boscombe Athletic Football Club Ltd; Defendant/appellant: Lloyds TSB Bank PLC
Jurisdiction: England and Wales
Judgment Date: 28 June 2004
Procedural Posture: Civil Appeal / Application for Costs Against Non Party After Unsuccessful Appeal
Outcome: Application granted
Legal Topics: Costs Orders Against Non Parties, Directors' Liability for Costs, Striking Out Actions, Abuse of Process

Civil Procedure Company Law Costs Orders Against Non Parties Directors' Liability for Costs Striking Out Actions Abuse of Process

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Parties

Bournemouth & Boscombe Athletic Football Club Ltd

Claimant/respondent

Lloyds TSB Bank PLC

Defendant/appellant

Procedural Posture

Civil Appeal / Application for Costs Against Non Party After Unsuccessful Appeal

Legal Issues

1 Whether a director (non-party) should be personally liable for costs of an unsuccessful appeal brought on behalf of an insolvent company
2 Whether the circumstances are exceptional to justify a non-party costs order

Ratio Decidendi

Court Disposition

Application granted

Orders

Mr Pack to pay the Bank's costs of the appeal and the costs of the application on the standard basis, subject to detailed assessment.