Northern Powerhouse Developments Limited & Ors v Gavin Lee Woodhouse
[2023] EWHC 1331 (Ch)
Ashraful Alam Khokan v Jawad Hossain Nirjhor
7 June 2024
[2024] EWHC 1872 (KB)
High Court
A journalist sued another, and didn't pay court-ordered costs. The judge ordered him to pay or lose his case, and also ordered him to provide financial security because he lives abroad, making it harder to collect money from him if he loses.
Key Facts
- •Defamation claim by Bangladeshi journalist (Claimant) residing in the USA against an investigative journalist (Defendant) based in London.
- •Claim relates to a video published on social media alleging the Claimant's involvement in a murder, corruption, and extramarital affairs.
- •Defendant pleads truth and public interest as defenses.
- •Claimant failed to pay a costs order of £20,646.58 issued by Senior Master Cook.
- •Defendant applied for an unless order to strike out the claim if costs are not paid and for security for costs.
- •Claimant's cross-application sought a stay of execution of the costs order.
- •Claimant's evidence regarding his financial situation was deemed inadequate and potentially misleading by the court.
Legal Principles
Court's power to extend time or vary orders (CPR 3.1(2)(a), 3.1(7)).
CPR 3.1
Approach to non-payment of costs orders in ongoing litigation; unless orders to protect court procedure (Crystal Decisions, Michael Wilson).
Michael Wilson & Partners v Sinclair [2017] EWHC 2424 (Comm); Crystal Decisions UK Limited v Vedatech Corp [2006] EWHC 3500 (Ch)
Relief from sanctions under CPR 3.9, applying Denton principles.
CPR 3.9; Denton & Ors v TH White Ltd & Ors [2014]1 WLR 3926; R and Hysaj & Ors (On the Application of) v Secretary of State for the Home Department [2015] 1 WLR 2472; Aramco Trading Fujairah FZE v Gulf Petrochem FZC [2021] EWHC 2650 (Comm)
Security for costs under CPR 25.12 and 25.13, considering residency outside the jurisdiction and steps taken to hinder enforcement.
CPR 25.12, 25.13; Infinity Distribution Ltd (in Administration) v Khan Partnership LLP [2021] EWCA Civ 565; Goldtrail Travel Ltd v Aydin [2017] UKSC 7; Nasser v United Bank of Kuwait [2002] 1 WLR 1868; Danilina v Chernukhin [2018] EWCA Civ 1802; Ackerman v Ackerman [2011] EWHC 2183 (Ch); Dubai Islamic Bank PJSC v PSI Energy Holding Co BSC [2011] EWCA Civ 761
Outcomes
Unless order granted: Claimant must pay £20,646.58 within a specified timeframe or the claim will be struck out.
Claimant's deliberate non-compliance with the costs order, inadequate evidence of impecuniosity, and potentially misleading information regarding assets. The court prioritized the need to enforce compliance with court orders and deter irresponsible litigation.
Security for costs order granted: Claimant must provide security for costs in the amount of £26,000.
Claimant's residency outside the jurisdiction (USA, a non-Convention state) and concerns about the difficulty of enforcing a costs order against him, given his evasiveness regarding his assets.