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a costly interest

22 June 2011

A rather robust judgment has been given in the High Court on the scope of the court to make costs orders against non-parties.

In a piece of litigation where Judgment had been given five years earlier, the parties were now embroiled in a dispute over the fact that several of the defendants who were shareholders in the first defendant funded that defence and as to how far they should now fund the costs of the successful claimant.

Insofar as four of the defendants were concerned, their involvement in the action was “open and honest”. Not only did they fund the litigation but they also had an “interest and control” of the litigation. As a result they had to take the financial consequences of that and bear the costs jointly and severally.

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