Pittville Ltd v Hunters & Frankau Ltd & Anor [2016] EWHC 2683 (Ch) (27 October 2016)

Pittville Ltd v Hunters & Frankau Ltd & Anor [2016] EWHC 2683 (Ch) (27 October 2016)

Deputy Master Cousins erred in law by treating lack of funds as a 'good reason' for non-compliance with the unless order for security for costs, failed to give appropriate weight to the need for efficient litigation and compliance with orders, and wrongly relied on alleged exceptional circumstances and evidence available at the time of the original order. There was no material change of circumstances or justification for variation under CPR 3.1(7). The appeal is allowed, the Deputy Master's order is set aside, and the original judgment and order in favour of the Defendants is restored.

Citation
[2016] EWHC 2683 (Ch)
Parties
Claimant/respondent: Pittville Limited (as assignee of the rights of MasterCigars Direct Limited); Defendant/appellant: Hunters & Frankau Limited; Defendant/appellant: Corporaçion Habanos, Sociedad Anonima
Jurisdiction
England and Wales
Judgment Date
27 October 2016
Procedural Posture
Appeal / Judgment on Appeal Against Relief From Sanctions and Variation of Unless Order
Outcome
Appeal allowed; Deputy Master's order set aside; original judgment and order in favour of Defendants restored.
Legal Topics
Relief From Sanctions, Security for Costs, Variation of Court Orders, Assignment of Claims, Case Management Discretion
Civil Procedure Commercial Law Insolvency Relief From Sanctions Security for Costs Variation of Court Orders Assignment of Claims Case Management Discretion

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Parties

Pittville Limited (as assignee of the rights of MasterCigars Direct Limited)

Claimant/respondent

Hunters & Frankau Limited

Defendant/appellant

Corporaçion Habanos, Sociedad Anonima

Defendant/appellant

Procedural Posture

Appeal / Judgment on Appeal Against Relief From Sanctions and Variation of Unless Order

Legal Issues

  1. 1 Whether lack of funds constitutes a 'good reason' for non-compliance with an unless order for security for costs
  2. 2 Whether Deputy Master Cousins erred in granting relief from sanctions and varying the unless order
  3. 3 Whether there was a material change of circumstances justifying variation of the unless order

Ratio Decidendi

Deputy Master Cousins erred in law by treating lack of funds as a 'good reason' for non-compliance with the unless order for security for costs, failed to give appropriate weight to the need for efficient litigation and compliance with orders, and wrongly relied on alleged exceptional circumstances and evidence available at the time of the original order. There was no material change of circumstances or justification for variation under CPR 3.1(7). The appeal is allowed, the Deputy Master's order is set aside, and the original judgment and order in favour of the Defendants is restored.

Court Disposition

Appeal allowed; Deputy Master's order set aside; original judgment and order in favour of Defendants restored.

Orders

  • Order of Deputy Master Cousins dated 7 October 2015 set aside.
  • Judgment and order of Deputy Master Nurse dated 26 August 2011 restored in favour of Defendants.