Dranez & Ors v Hayek & Ors

Dranez & Ors v Hayek & Ors

Appropriation of payments made as security for costs is invalid where there is only one debt, the debt is unquantified, and notification to the debtor was not properly made. The Defendants' attempted appropriation failed on all these grounds.

Parties
Claimant: Dranez Anstalt; Claimant: Dranez Holdings AG; Claimant: Flexco Medical Instruments AG; Claimant: Breasy Medical Equipment Limited; Claimant: Raphi Berber; Claimant: Kilroy Holdings SA; Claimant: Dorley Investment Limited; Claimant: Charenton Limited; Defendant: Zamir Hayek; Defendant: Medivent Limited; Defendant: Kay Teresa De Bernardo; Defendant: Andrew Higgs; Respondent (for the Purpose of Costs Only): Samuel Hayek
Jurisdiction
England and Wales
Judgment Date
02 April 2008
Procedural Posture
Costs Assessment / Preliminary Issues Prior to Detailed Assessment
Outcome
Finding for the paying party; appropriation by Defendants invalid.
Legal Topics
Appropriation of Payments, Security for Costs, Detailed Assessment, Notification of Appropriation
Civil Procedure Costs Appropriation of Payments Security for Costs Detailed Assessment Notification of Appropriation

Case Brief

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Parties

Dranez Anstalt

Claimant

Dranez Holdings AG

Claimant

Flexco Medical Instruments AG

Claimant

Breasy Medical Equipment Limited

Claimant

Raphi Berber

Claimant

Kilroy Holdings SA

Claimant

Dorley Investment Limited

Claimant

Charenton Limited

Claimant

Zamir Hayek

Defendant

Medivent Limited

Defendant

Kay Teresa De Bernardo

Defendant

Andrew Higgs

Defendant

Samuel Hayek

Respondent (for the Purpose of Costs Only)

Procedural Posture

Costs Assessment / Preliminary Issues Prior to Detailed Assessment

Legal Issues

  1. 1 Whether the Defendants validly appropriated payments made into court as security for costs
  2. 2 Whether appropriation can occur where there is only one debt
  3. 3 Whether appropriation requires a quantified debt

Ratio Decidendi

Appropriation of payments made as security for costs is invalid where there is only one debt, the debt is unquantified, and notification to the debtor was not properly made. The Defendants' attempted appropriation failed on all these grounds.

Court Disposition

Finding for the paying party; appropriation by Defendants invalid.

Orders

  • Security for costs remains available to be set off against Samuel Hayek's liability.
  • No valid appropriation of security for costs by Defendants.