WOL (London) LLP v Croydon Investments Limited & Ors (Costs)
[2024] EWHC 485 (TCC)
Trafalgar Multi Asset Trading Company Limited v James David Hadley & Ors
26 October 2023
[2023] EWHC 2670 (Ch)
High Court
A company sued many people. This ruling decided how much one person (Mr. Wright) gets back for his legal costs (a bit, but less than he wanted). It also said another company (CGrowth) wouldn't have to share his legal costs. And, the suing company will get interest on what it won, but calculated in a better way for them.
Key Facts
- •Trafalgar Multi Asset Trading Co. Ltd (in liquidation) claimed against multiple defendants for various breaches, including conspiracy, bribery, and breaches of fiduciary duty.
- •This judgment deals with consequential matters following a previous liability judgment (EWHC 1184 (Ch)).
- •Three issues were considered: Mr. Wright's application for costs on account, Trafalgar's application for joint liability for CGrowth's costs, and Trafalgar's application for compound interest.
- •Mr. Wright, representing himself and CGrowth, was a defendant who successfully defended the claims against him.
- •CGrowth Capital Bond Ltd. was also a defendant held liable for costs.
Legal Principles
Payment on account of costs where costs are subject to detailed assessment.
CPR rule 44.2(8)
Court's power to determine costs, including against non-parties.
Section 51 Senior Courts Act 1981; Interbulk Ltd v Aiden Shipping Co Ltd
Criteria for making a non-party liable for costs (e.g., 'real party' to the litigation, personal benefit, impropriety, bad faith).
Goknur Gida Maddeleri Enerji Imalet Ithalat Ihracat Ticaret v Sanayi AS v Aytacli [2021] EWCA Civ 1037
Equitable jurisdiction to award compound interest in cases of fraud or breach of fiduciary duty.
President of India v La Pintada Compania Navigacion SA [1985] AC 104; Granville Technology Group v LG Display [2023] EWCA Civ 980
Liability of dishonest recipients of trust property and dishonest assistants in breaches of fiduciary duty.
Central Bank of Ecuador v Conticorp SA; Novoship (UK) Ltd and others v Nikitin and others [2014] EWCA Civ 908
Outcomes
Mr. Wright awarded £15,000 payment on account of costs, to be set off against existing liability.
While Mr. Wright’s claim was largely unsubstantiated, the court accepted that he incurred significant costs; the amount was significantly reduced due to lack of sufficient evidence.
Trafalgar's application for joint and several liability of Mr. Wright for CGrowth's costs dismissed.
The court found insufficient evidence to show Mr. Wright was the ‘real party’ to the litigation or acted in bad faith. CGrowth had other stakeholders, and defending the claim was not shown to be solely for Mr. Wright's benefit.
Trafalgar's application for compound interest granted.
The court found that both the ‘fraud limb’ and ‘fiduciary limb’ of La Pintada applied due to the established conspiracies and breaches of fiduciary duty, justifying compound interest.
Similar Cases
Camberley Group Plc & Ors v Paul Foster & Ors
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Trafalgar Multi Asset Trading Company v James David Hadley & Anor.
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Eva Green v White Lantern Film (Britannica) Limited & Anor
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Chedington Events Limited v Nihal Mohammed Kamal Brake & Anor (Quantum trial consequential orders)
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