Vistarama Balloon Systems International Ltd v Lindstrand Balloons Ltd

The discretion under section 51 of the Supreme Court Act to order an individual to pay another party’s costs personally must be exercised according to what is just in all the circumstances. It is not just to make such an order where the individual has taken no substantive step in the appeal and has merely investigated whether the company could continue it. The availability of an earlier application for security for costs under the CPR is also relevant to the exercise of that discretion.

The claimant appealed from proceedings in the Chancery Division, Bristol District Registry, before His Honour Judge Weeks sitting as a High Court judge. After the company entered administrative receivership, Mr Hall investigated whether the company could proceed with the appeal but acquired no authority to represent it. The company therefore did not appear, and the appeal was struck out. The court then considered an application that Mr Hall should personally pay the petitioner’s costs from the date of the receivership, together with the assessment of those costs.

1. The appeal was struck out because the company had not appeared and Mr Hall had no authority to speak on its behalf.
2. The court declined to order Mr Hall personally to pay the petitioner’s costs under section 51 of the Supreme Court Act. The power was discretionary, and the proposed order was not just in the circumstances. Mr Hall had taken no step in the appeal beyond investigating with his fellow directors whether the company could procure its continuation.
3. The court further considered that the petitioner had an available remedy. It could have applied at an early stage for security for costs under section 2 of the CPR 25. That consideration supported refusing personal liability against Mr Hall.
4. The petitioner’s costs statement was reasonable, subject to deducting five of the seven hours allowed for the hearing. Costs were summarily assessed at £7,750. The application was dismissed.

• Court of Appeal (Civil Division): The appeal from the Chancery Division, Bristol District Registry, was struck out after the company entered administrative receivership and no authorised representative appeared. The application for a personal costs order against Mr Hall was dismissed, and costs were assessed at £7,750.