SBJ Stephenson Ltd v Mandy [1999] EWHC 277 (QB) (01 December 1999)

SBJ Stephenson Ltd v Mandy [1999] EWHC 277 (QB) (01 December 1999)

Amilcroft's partners funded Mr Mandy's defence in their own commercial interest, knowing he could not pay costs if he lost; their conduct, including the timing and nature of funding, made the case sufficiently exceptional to justify a non-party costs order for half of SBJ's costs from 1 May 1999 to 30 July 1999.

Citation
[1999] EWHC 277
Parties
Claimant: SBJ Stephenson Ltd; Defendant: Keith Anthony Mandy; Partner, Amilcroft Insurance Brokers (non Party Applicant): Robert Elkins; Partner, Amilcroft Insurance Brokers (non Party Applicant): Richard Alexander
Jurisdiction
England and Wales
Judgment Date
01 December 1999
Procedural Posture
High Court Application for Non Party Costs Order / Post Trial, Costs Application
Outcome
Application granted in part
Legal Topics
Non Party Costs Orders, Restrictive Covenants, Breach of Contract, Costs Discretion
Civil Procedure Employment Law Non Party Costs Orders Restrictive Covenants Breach of Contract Costs Discretion

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Parties

SBJ Stephenson Ltd

Claimant

Keith Anthony Mandy

Defendant

Robert Elkins

Partner, Amilcroft Insurance Brokers (non Party Applicant)

Richard Alexander

Partner, Amilcroft Insurance Brokers (non Party Applicant)

Procedural Posture

High Court Application for Non Party Costs Order / Post Trial, Costs Application

Legal Issues

  1. 1 Whether non-party funders (Amilcroft partners) should pay part or all of the Claimant's costs under section 51 of the Supreme Court Act 1981
  2. 2 Whether the circumstances justify an exceptional order for costs against non-parties who funded the defence

Ratio Decidendi

Amilcroft's partners funded Mr Mandy's defence in their own commercial interest, knowing he could not pay costs if he lost; their conduct, including the timing and nature of funding, made the case sufficiently exceptional to justify a non-party costs order for half of SBJ's costs from 1 May 1999 to 30 July 1999.

Court Disposition

Application granted in part

Orders

  • Mr Elkins and Mr Alexander to pay half of SBJ's costs of the action from 1 May 1999 to 30 July 1999, subject to detailed assessment and credit for sums already paid.
  • Detailed assessment of SBJ's costs payable by Mr Mandy and by Mr Elkins and Mr Alexander.