Brownrigg Coal Co., Ltd v. Sneddon [1911] ScotLR 881 (27 June 1911)

Brownrigg Coal Co., Ltd v. Sneddon [1911] ScotLR 881 (27 June 1911)

The Inner House will not interfere with the Lord Ordinary's exercise of discretion under section 278 unless a clear case of error is shown; here, no sufficient reason was shown to interfere, as the company was not in liquidation or insolvent and was formed bona fide for coal working, not solely to pursue speculative litigation.

Citation
[1911] ScotLR 881
Parties
Pursuer: Brownrigg Coal Company, Limited; Defender: Robert Sneddon
Jurisdiction
Scotland
Judgment Date
27 June 1911
Procedural Posture
Civil / Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor Refusing Motion for Security for Expenses
Outcome
reclaiming motion refused; interlocutor of Lord Ordinary adhered to
Legal Topics
Security for Expenses, Discretion of the Court, Companies (consolidation) Act 1908 Section 278
Company Law Civil Procedure Security for Expenses Discretion of the Court Companies (consolidation) Act 1908 Section 278

Case Brief

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Parties

Brownrigg Coal Company, Limited

Pursuer

Robert Sneddon

Defender

Procedural Posture

Civil / Reclaiming Motion (appeal) Against Lord Ordinary's Interlocutor Refusing Motion for Security for Expenses

Legal Issues

  1. 1 Whether the court should interfere with the Lord Ordinary's discretion in refusing to order a limited company pursuer to find caution (security) for the defender's expenses under section 278 of the Companies (Consolidation) Act 1908

Ratio Decidendi

The Inner House will not interfere with the Lord Ordinary's exercise of discretion under section 278 unless a clear case of error is shown; here, no sufficient reason was shown to interfere, as the company was not in liquidation or insolvent and was formed bona fide for coal working, not solely to pursue speculative litigation.

Court Disposition

reclaiming motion refused; interlocutor of Lord Ordinary adhered to

Orders

  • Motion for security for expenses refused
  • Leave open for defender to renew motion if circumstances warrant