DNA Productions (Europe) Ltd v Manoukian

DNA Productions (Europe) Ltd v Manoukian

A non-party costs order was justified because Mr James, as director, controlled and financed the litigation, stood to benefit, and engaged in impropriety and deception regarding contract terms and disclosure, rendering security for costs insufficient protection for the Defendant.

Parties
Claimant: DNA Productions (Europe) Limited; Defendant: Mr Rafi Manoukian; Non Party Respondent: Mr Matthew James
Jurisdiction
England and Wales
Judgment Date
05 September 2008
Procedural Posture
Civil / Post Trial Costs Application
Outcome
Non-party costs order granted against Mr Matthew James.
Legal Topics
Non Party Costs Orders, Director Liability, Contract Interpretation, Litigation Impropriety
Civil Procedure Company Law Non Party Costs Orders Director Liability Contract Interpretation Litigation Impropriety

Case Brief

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Parties

DNA Productions (Europe) Limited

Claimant

Mr Rafi Manoukian

Defendant

Mr Matthew James

Non Party Respondent

Procedural Posture

Civil / Post Trial Costs Application

Legal Issues

  1. 1 Whether a non-party (director) should be ordered to pay costs under section 51(3) Supreme Court Act 1981
  2. 2 Whether impropriety in litigation conduct justifies a non-party costs order
  3. 3 Whether security for costs suffices to protect the successful party

Ratio Decidendi

A non-party costs order was justified because Mr James, as director, controlled and financed the litigation, stood to benefit, and engaged in impropriety and deception regarding contract terms and disclosure, rendering security for costs insufficient protection for the Defendant.

Court Disposition

Non-party costs order granted against Mr Matthew James.

Orders

  • Respondent to pay Defendant's costs of the application to be assessed.
  • Balance of £53,653.84 to be paid forthwith with interest at 1 percent over base rate from 28th May 2008 until payment.