Leeds United -v- Admatch [2014] JRC 167 (05 September 2014)

Leeds United -v- Admatch [2014] JRC 167 (05 September 2014)

Mr Weston promoted and funded the defence of the proceedings by Admatch for his own benefit rather than for the benefit of Admatch or its creditors. The exceptional circumstances and interests of justice justify a non-party costs order against him. However, due to the plaintiffs' failure to give an unambiguous early warning of potential personal liability and changes in their case, a reduction of one third is made in the costs ordered against Mr Weston. Costs are awarded on the standard basis, not indemnity.

Citation
[2014] JRC 167
Parties
First Plaintiff: Leeds United Football Club Limited (in liquidation); Second Plaintiff: Leeds United Football Club Limited (2007); Defendant: Admatch Limited; Convened Party / Non Party: Mr Weston
Jurisdiction
Jersey
Judgment Date
05 September 2014
Procedural Posture
Civil / Post Judgment Costs Application
Outcome
Application granted in part
Legal Topics
Non Party Costs Orders, Director Liability for Company Costs, Costs Taxation, Set Off Clauses, Agency Agreements
Civil Procedure Company Law Non Party Costs Orders Director Liability for Company Costs Costs Taxation Set Off Clauses Agency Agreements

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Parties

Leeds United Football Club Limited (in liquidation)

First Plaintiff

Leeds United Football Club Limited (2007)

Second Plaintiff

Admatch Limited

Defendant

Mr Weston

Convened Party / Non Party

Procedural Posture

Civil / Post Judgment Costs Application

Legal Issues

  1. 1 Whether a non-party (Mr Weston) should be ordered to pay the costs of litigation brought by the plaintiffs against Admatch Limited
  2. 2 Whether the defence of the proceedings was promoted for the benefit of Mr Weston or Admatch
  3. 3 Whether failure to warn Mr Weston of potential personal costs liability affects the order

Ratio Decidendi

Mr Weston promoted and funded the defence of the proceedings by Admatch for his own benefit rather than for the benefit of Admatch or its creditors. The exceptional circumstances and interests of justice justify a non-party costs order against him. However, due to the plaintiffs' failure to give an unambiguous early warning of potential personal liability and changes in their case, a reduction of one third is made in the costs ordered against Mr Weston. Costs are awarded on the standard basis, not indemnity.

Court Disposition

Application granted in part

Orders

  • Admatch Limited is ordered to pay the unawarded costs of the proceedings on the standard basis.
  • Mr Weston is ordered to pay two thirds of the total Admatch costs (as defined) on the standard basis, to be taxed if not agreed, limited to costs incurred in the Royal Court.