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, through its partners, funded Mr Mandy's defence in its own commercial interest, knowing he could not pay costs if he lost, and failed to disclose its involvement despite notice; these circumstances are sufficiently exceptional to justify an order that the partners pay half of SBJ's costs for a defined period, but not all costs, as SBJ could have joined Amilcroft as a party but chose not to.

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

Case Brief

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Parties

SBJ Stephenson Ltd

Claimant

Keith Anthony Mandy

Defendant

Robert Elkins

Partner in Amilcroft Insurance Brokers (non Party Applicant)

Richard Alexander

Partner in Amilcroft Insurance Brokers (non Party Applicant)

Procedural Posture

High Court Civil Application / Post Trial Costs Application

Legal Issues

  1. 1 Whether non-party partners in Amilcroft Insurance Brokers should be ordered to pay part or all of SBJ Stephenson Ltd's costs of successful proceedings against Mr Mandy under section 51 of the Supreme Court Act 1981

Ratio Decidendi

Amilcroft, through its partners, funded Mr Mandy's defence in its own commercial interest, knowing he could not pay costs if he lost, and failed to disclose its involvement despite notice; these circumstances are sufficiently exceptional to justify an order that the partners pay half of SBJ's costs for a defined period, but not all costs, as SBJ could have joined Amilcroft as a party but chose not to.

Court Disposition

Application granted in part

Orders

  • Mr Elkins and Mr Alexander to pay half of SBJ Stephenson Ltd'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.