Against non-party (3)

Suisse Security Bank & Trust Ltd v Francis [2006] UKPC 41 BC (Bah)

The bank’s appeal against revocation of its licence to carry on banking in the Bahamas had been dismissed. The defendant sought costs from the chairman and principal shareholder of the bank on the grounds that he had acted in his own interests rather than in the interests of the bank or its creditors. In making a costs order against the chairman, the Privy Council said that he had treated the bank as his own creature and preferred his own interests to its. The bank’s major assets were deposits with two companies owned and controlled by the chairman. The appeal had been pursued at the chairman’s instance even though it was inconceivable that the bank could be allowed to continue as an operating bank. Notice had been given by the defendant of an intention to seek cost personally against the chairman in the Court of Appeal, and although no order had been made, there was no further requirement to give notice.