Guest Supplies Intl Ltd v South Place Hotel Ltd & Anor [2020] EWHC 3307 (QB) (03 December 2020)

Guest Supplies Intl Ltd v South Place Hotel Ltd & Anor [2020] EWHC 3307 (QB) (03 December 2020)

There is reason to believe GSIL will not be able to pay the defendants' costs if ordered, due to unexplained discrepancies in accounts, illiquidity of assets, anticipated tax liabilities, and the impact of the pandemic. It is just to order further security for costs. There is no basis for release of the initial security. Privilege has not been waived in respect of the communications sought, so specific disclosure is refused.

Citation
[2020] EWHC 3307
Parties
Claimant: Guest Supplies Intl Limited; First Defendant: South Place Hotel Limited; Second Defendant: D&D London Limited
Jurisdiction
England and Wales
Judgment Date
03 December 2020
Procedural Posture
Breach of Contract Claim / Interlocutory Applications Before Trial
Outcome
Defendants' application for further security for costs granted; claimant's application for release of initial security refused; defendants' application for specific disclosure refused.
Legal Topics
Security for Costs, Specific Disclosure, Legal Professional Privilege, Company Accounts, Breach of Contract
Civil Procedure Contract Law Security for Costs Specific Disclosure Legal Professional Privilege Company Accounts Breach of Contract

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Parties

Guest Supplies Intl Limited

Claimant

South Place Hotel Limited

First Defendant

D&D London Limited

Second Defendant

Procedural Posture

Breach of Contract Claim / Interlocutory Applications Before Trial

Legal Issues

  1. 1 Whether the claimant should provide further security for costs under CPR 25.13(2)(c)
  2. 2 Whether the claimant's application for release of initial security should be granted
  3. 3 Whether the claimant should provide specific disclosure of privileged communications

Ratio Decidendi

There is reason to believe GSIL will not be able to pay the defendants' costs if ordered, due to unexplained discrepancies in accounts, illiquidity of assets, anticipated tax liabilities, and the impact of the pandemic. It is just to order further security for costs. There is no basis for release of the initial security. Privilege has not been waived in respect of the communications sought, so specific disclosure is refused.

Court Disposition

Defendants' application for further security for costs granted; claimant's application for release of initial security refused; defendants' application for specific disclosure refused.

Orders

  • Claimant to provide further security for costs in the sum of £150,000 in addition to the £50,000 already provided, to be paid into court in two tranches of £75,000 each by specified dates.
  • Monies currently held by former solicitors to be paid into court.