Order against third party

Bournemouth & Boscombe Athletic Football Club Ltd v Lloyds TSB Bank plc [2004] EWCA Civ 935

The claimant football club was in severe financial trouble and was unable to meet its obligations to its bankers, the defendant, who appointed administrative receivers. The club entered into a company voluntary arrangement and its business was sold to a new company. One of the directors initiated proceedings against the bank in the name of the company, which were struck out. He then initiated further proceedings making the same allegations. That action too was struck out and an appeal against the striking out also failed. The director was ordered to be added as a defendant to enable an application to be made for a costs order against him pursuant to CPR rule 48.2(1). The director had sought to play fast and loose with the civil justice system by commencing and presenting hopeless claims and by presenting a hopeless appeal on behalf of an insolvent company. The circumstances were sufficiently exceptional to justify the Court making him face the financial consequences of his conduct by ordering him personally to pay the costs of the company’s unsuccessful appeal.