Janvey v Wastell & Anor

A foreign court-appointed receiver who submits to the jurisdiction may be ordered to pay the opposing parties’ costs. Uncertainty about whether payment requires approval from the appointing court does not prevent a costs order, although it may justify a temporary stay of enforcement. The court may also order an interim payment on account of costs. Permission to appeal may be refused while the costs order is stayed to allow an application to the Supreme Court and, where necessary, to the appointing court.

Janvey v Wastell & Anor concerned costs arising from a civil appeal in insolvency proceedings. Ralph Steven Janvey, as receiver of Stanford International Bank Ltd, appealed from an order of Lewison J against the bank’s Antiguan liquidators, Peter Nicholas Wastell and Nigel John Hamilton-Smith. The Court of Appeal considered liability for the liquidators’ costs, the appropriate interim payment, permission to appeal, and the timing of enforcement where the receiver might require approval from the United States court.

1. The Court of Appeal ordered the US receiver to pay the Antiguan liquidators’ costs of and relating to the appeal from the order of Lewison J. The costs were to be assessed on the standard basis.
2. The receiver’s appointment by the United States court did not prevent the English court from making a costs order after the receiver had come before it and submitted to its jurisdiction. The court did not require an undertaking to apply to the United States court for approval of payment.
3. An interim payment on account of costs was appropriate. Having considered the figures, the court fixed the payment at £130,000.
4. Permission to appeal was refused, subject to the respondents’ right to apply to the Supreme Court for permission. Enforcement of the costs order was stayed until 14 days after the time for seeking permission had expired. If permission were granted, the stay would continue until disposal of the appeal; if permission were refused, it would end on the date of the Supreme Court’s judgment. The receiver could apply to renew the stay if the period proved insufficient to obtain approval from the United States court.

1. Court of Appeal (Civil Division) made the costs, interim-payment and stay orders and refused permission to appeal.
2. High Court of Justice, Chancery Division (Companies Court): appeal from an order of Lewison J; the citation of that order was not stated in the judgment.