Sims v Hawkins

Sims v Hawkins

The trial judge did not err in exercising his discretion to limit the Hawkins' non-party costs liability to the period from 1 October 2005, as it was only from that point that their funding and control of the defence was substantially for their own benefit rather than the company's. There was no inconsistency or error of law in the judge's approach, and the absence of earlier notice to the Hawkins was only a factor, not determinative.

Parties
Appellant/claimant: Dean Sims; Respondents/non Parties (directors/shareholders): Roger Hawkins and Eileen Hawkins; Defendant Company: Roger Hawkins Design and Construct Ltd (later Abendigo Property Ltd)
Jurisdiction
England and Wales
Judgment Date
14 November 2007
Procedural Posture
Civil Appeal / Appeal From Costs Order After Trial and Assessment of Damages
Outcome
Appeal dismissed
Legal Topics
Non Party Costs Orders, Directors' Liability for Costs, Section 51 Supreme Court Act 1981, Litigation Funding and Control, Exercise of Judicial Discretion in Costs
Civil Procedure Company Law Non Party Costs Orders Directors' Liability for Costs Section 51 Supreme Court Act 1981 Litigation Funding and Control Exercise of Judicial Discretion in Costs

Case Brief

Summary, issues, holding and outcome

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Parties

Dean Sims

Appellant/claimant

Roger Hawkins and Eileen Hawkins

Respondents/non Parties (directors/shareholders)

Roger Hawkins Design and Construct Ltd (later Abendigo Property Ltd)

Defendant Company

Procedural Posture

Civil Appeal / Appeal From Costs Order After Trial and Assessment of Damages

Legal Issues

  1. 1 Whether the directors/shareholders of an insolvent company should be liable for costs under section 51(3) Supreme Court Act 1981, and from what date such liability should arise
  2. 2 Whether the trial judge erred in limiting the period of non-party costs liability to a specific date close to trial

Ratio Decidendi

The trial judge did not err in exercising his discretion to limit the Hawkins' non-party costs liability to the period from 1 October 2005, as it was only from that point that their funding and control of the defence was substantially for their own benefit rather than the company's. There was no inconsistency or error of law in the judge's approach, and the absence of earlier notice to the Hawkins was only a factor, not determinative.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed; the order limiting non-party costs liability to the period from 1 October 2005 stands.