The Secretary of State for Business, Enterprise and Industrial Strategy v Viceroy Jones New Tech Ltd & Ors

The Secretary of State for Business, Enterprise and Industrial Strategy v Viceroy Jones New Tech Ltd & Ors

It is just in all the circumstances to order Mr Frost to pay the costs of the winding up proceedings and the companies' defence, as he was the architect and controlling mind of a scheme lacking commercial probity, did not act bona fide in defending the petitions, and caused unnecessary costs to be incurred for his...

Source-derived case information.

Parties
Petitioner: Secretary of State for Business, Enterprise and Industrial Strategy; Respondent: Viceroy Jones New Tech Limited; Respondent: Viceroy Jones Overseas PCC Limited; Respondent: Westcountrytruffles Limited; Respondent: Credit Free Limited; Respondent: Truffle Sales Limited; Respondent: George Frost
Jurisdiction
England and Wales
Judgment Date
12 May 2020
Procedural Posture
Public Interest Winding Up Petition and Non Party Costs Application / Post Judgment Costs Application
Outcome
Non-party costs order granted against George Frost.
Legal Topics
Non Party Costs Orders, Abuse of Limited Liability, Winding Up in Public Interest, Director Liability for Costs
Insolvency Law Company Law Civil Procedure Non Party Costs Orders Abuse of Limited Liability Winding Up in Public Interest Director Liability for Costs

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Parties

Secretary of State for Business, Enterprise and Industrial Strategy

Petitioner

Viceroy Jones New Tech Limited

Respondent

Viceroy Jones Overseas PCC Limited

Respondent

Westcountrytruffles Limited

Respondent

Credit Free Limited

Respondent

Truffle Sales Limited

Respondent

George Frost

Respondent

Procedural Posture

Public Interest Winding Up Petition and Non Party Costs Application / Post Judgment Costs Application

Legal Issues

  1. 1 Whether a non-party costs order should be made against George Frost under Section 51 of the Senior Courts Act 1981 for costs incurred in defending public interest winding up petitions.
  2. 2 Whether Mr Frost acted bona fide in causing the companies to defend the petitions and whether it was just to make him personally liable for costs.

Ratio Decidendi

It is just in all the circumstances to order Mr Frost to pay the costs of the winding up proceedings and the companies' defence, as he was the architect and controlling mind of a scheme lacking commercial probity, did not act bona fide in defending the petitions, and caused unnecessary costs to be incurred for his own benefit, thereby abusing the privilege of limited liability.

Court Disposition

Non-party costs order granted against George Frost.

Orders

  • George Frost to pay the Secretary of State's costs of the petitions in relation to the defending companies from 17 August 2017 until judgment, excluding costs of the 29 March 2018 application.
  • George Frost to pay the defending companies' costs of the petitions for the same period if and to the extent those costs have been borne by the companies.