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Cost control

Cost orders against third parties are becoming more widely available, as Daniel Kidd explains

30 June 2006

Winning your case at trial may often be only half the battle. You still need to recover your client’s damages and any costs awarded in their favour. This can be difficult if the unsuccessful party is insolvent, or rendered so by the litigation. This has caused some successful parties to attempt to recover costs from others who were not named as a party to the proceedings. Such claims can be successful and are a useful tool for recovering costs.

We have known since 1986, when Aiden Shipping v Interbulk [1986] 1 AC 965 was decided, that s 51 of the Supreme Court Act 1981 allows the court to make costs orders against “non-parties”. However, the last few years have seen significant developments in this area of law, increasing the range of cases where the court will invoke the power. A recent decision of the High Court provides further assistance to applicants for this type of order.

Recent developments

The latest line of cases might be said to be...

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