Goknur Gida Maddeleri Enerji Imalat Ithalat Ihracat Ticaret Ve Sanati A.S. v Organic Village Ltd & Anor (Rev 1)

A non-party costs order should not be made against Mr Aytacli because, although he controlled and funded the litigation, he did so in good faith 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. Further, the costs outcome resulted from Organic Village's inability to fund detailed assessment, not from any abuse or manipulation by Mr Aytacli.

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 Application
Outcome: application dismissed
Legal Topics: Non Party Costs Orders, Directors' Liability for Costs, Litigation Funding, Costs Assessment

Civil Procedure Company Law Non Party Costs Orders Directors' Liability for Costs Litigation Funding Costs Assessment

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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 Application

Legal Issues

1 Whether a non-party costs order should be made against Mr Aytacli, former director of Organic Village Ltd, under section 51 of the Senior Courts Act 1981 and CPR 46.2

Ratio Decidendi

Court Disposition

application dismissed