Goodwood Recoveries Ltd v Breen

Goodwood Recoveries Ltd v Breen

Mr Slater was the real party in interest, controlled and conducted the litigation for his own benefit, and his dishonest and improper conduct caused the whole of the costs incurred; justice required a costs order against him under section 51(3), regardless of whether there was a finding of initial bad faith.

Parties
Claimant/respondent: Goodwood Recoveries Ltd; Defendant/applicant/respondent: William Peter Breen; Defendant/appellant: Michael Robert Slater
Jurisdiction
England and Wales
Judgment Date
19 April 2005
Procedural Posture
Civil Appeal / Appeal From Costs Order Under Section 51(3) Supreme Court Act 1981
Outcome
Appeal dismissed
Legal Topics
Third Party Costs Orders, Director Liability for Costs, Litigation Funding, Abuse of Process
Civil Procedure Company Law Third Party Costs Orders Director Liability for Costs Litigation Funding Abuse of Process

Case Brief

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Parties

Goodwood Recoveries Ltd

Claimant/respondent

William Peter Breen

Defendant/applicant/respondent

Michael Robert Slater

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Costs Order Under Section 51(3) Supreme Court Act 1981

Legal Issues

  1. 1 Whether a director can be made personally liable for costs under section 51(3) for litigation conducted in the name of his company
  2. 2 Whether exceptional circumstances existed to justify a third party costs order against Mr Slater
  3. 3 Whether Mr Slater's conduct was causative of the costs incurred

Ratio Decidendi

Mr Slater was the real party in interest, controlled and conducted the litigation for his own benefit, and his dishonest and improper conduct caused the whole of the costs incurred; justice required a costs order against him under section 51(3), regardless of whether there was a finding of initial bad faith.

Court Disposition

Appeal dismissed

Orders

  • Costs of the action, including the section 51(3) application, awarded against Mr Slater on an indemnity basis, subject to credit for £6,000 paid by Butcher Burns.