Goknur Gida Maddeleri Enerji Imalat Ithalat Ihracat Ticaret Ve Sanati A.S. v Organic Village Ltd & Anor (Rev 1) [2020] EWHC 2542 (QB) (30 September 2020)

Goknur Gida Maddeleri Enerji Imalat Ithalat Ihracat Ticaret Ve Sanati A.S. v Organic Village Ltd & Anor (Rev 1) [2020] EWHC 2542 (QB) (30 September 2020)

A non-party costs order should not be made against Mr Aytacli because, although he controlled and funded the litigation as a director and guarantor, the proceedings were conducted bona fide for the benefit of Organic Village and its creditors, not for his own benefit, and there was no impropriety or bad faith. The...

Source-derived case information.

Citation
[2020] EWHC 2542
Parties
Claimant: Goknur Gida Maddeleri Enerji Imalat Ithalat Ihracat Ticaret ve Sanati A. S.; First Defendant: Organic Village Ltd; Second Defendant: Mr Cengiz Aytacli
Jurisdiction
England and Wales
Judgment Date
30 September 2020
Procedural Posture
Application for Non Party Costs Order / Post Trial, Costs Application
Outcome
Application dismissed
Legal Topics
Non Party Costs Orders, Directors' Liability for Costs, Costs Assessment, Litigation Funding, Corporate Veil
Civil Procedure Company Law Non Party Costs Orders Directors' Liability for Costs Costs Assessment Litigation Funding Corporate Veil

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Parties

Goknur Gida Maddeleri Enerji Imalat Ithalat Ihracat Ticaret ve Sanati A. S.

Claimant

Organic Village Ltd

First Defendant

Mr Cengiz Aytacli

Second Defendant

Procedural Posture

Application for Non Party Costs Order / Post Trial, Costs Application

Legal Issues

  1. 1 Whether a non-party costs order should be made against Mr Cengiz Aytacli under section 51 of the Senior Courts Act 1981 for costs incurred by Goknur in litigation against Organic Village Ltd.

Ratio Decidendi

A non-party costs order should not be made against Mr Aytacli because, although he controlled and funded the litigation as a director and guarantor, the proceedings were conducted bona fide for the benefit of Organic Village and its creditors, not for his own benefit, and there was no impropriety or bad faith. The exceptional circumstances required for such an order against a director were not met.

Court Disposition

Application dismissed

Orders

  • No non-party costs order made against Mr Cengiz Aytacli.