Non Party Costs Order

Non Party Costs Orders | Court Of Appeal Decision

In the case of an insolvent company involved in litigation which has resulted in a costs liability that the company cannot pay, a director of that company may be made the subject of such an order. Although such instances will necessarily be rare (Taylor v Pace Developments [1991] BCC 406), s.51 orders may be made to avoid the injustice of an individual director hiding behind a corporate identity, so as to engage in risk-free litigation for his own purposes (Re North West Holdings PLC and Anr [2001] EWCA Civ 67). Such an order does not impinge on the principle of limited liability: Dymocks; Goodwood; Threlfall.