Issue 39 October 2021 - Journal - Page 133
In the case of Luxurious Polyester Ltd, there is a good
argument that PPE Pandemic Ltd would be unable to
satisfy an award for costs. Having only been incorporated at the start of the Covid-19 pandemic, it has not
built-up significant assets. Despite demand for
personal protective equipment being extremely high
recently, supply chain and certification issues have
meant that trade has been poor and its balance sheet
However, unfortunately you might not be in for the
easy win with your security for costs application as it
might appear. PPE Pandemic Ltd has its own forensic
accountant critiquing the application and they have
access to more detailed financial information from
their client. PPE Pandemic Ltd will emphasise the role
Luxurious Polyester Ltd’s alleged breach of contract
has played in reducing its access to the raw materials
needed to trade.
The Court would likely be reluctant to grant a security
for costs order that could potentially stifle and force
the abandonment of a genuine claim. It is a delicate
balancing act for the Court, weighing a possible injustice against PPE Pandemic Ltd against the risk that
Luxurious Polyester Ltd will be unable to recover its
legal costs defending a potentially unfounded claim.
Given the large number of businesses in delicate
financial circumstances and the increase in contract
disputes, security for costs applications are likely to be
common in the coming months. As forensic accountants, we look forward to assisting our clients in
applying for or critiquing security for cost applications.
About the Author
Senior Forensic Accounting
Professor Christopher Raine MBE
B.Sc. (Hons), MB BS, FRCS (Otol), Master of Surgery Ch.M.
Christopher Raine was appointed consultant Oto-Rhino-Laryngologist at
Bradford Royal Infirmary in 1986.
He has special interest in paediatric and adult otology. He is clinical
director for the supra-regional Yorkshire Auditory Implant Service, with
cochlear implantation starting in 1990 and middle ear implantation in
2001. He has an extensive Rhinological/sinus surgery practice and
deals with most none malignant head and neck pathology.
Neil is part of a highly experienced team at Azets who
deliver forensic accounting and expert witness services
in both civil and criminal cases as well as providing
forensic advisory services. He manages the delivery of
clients’ needs in relation to:
• Commercial, shareholder and matrimonial disputes
• Loss of profits litigation
• Fraud investigations
• Contentious and non-contentious business
• Post company acquisition / sale disputes, expert
determinations, and breach of warranty claims
Professor Raine was an Intercollegiate Examiner for the final part in
Oto-Rhino-Laryngology Head and Neck surgery until 2015 and now is
involved in question writing and standard setting. He is also member of
the European Board of examiners in ORL.
He was awarded the MBE in April 2015 for work for the NHS and the
Ear Trust Charity.
Christopher Raine has vast experience in the preparation of medical
reports. Producing written reports since 1986 and currently completing
over 100 cases per year covering various aspects such as medical
negligence, personal injury and noise induced hearing loss. He receives
instructions on behalf of both claimant and defendants, in the
approximate ratio of 55:40, with about 5% of instructions for joint reports.
He is always happy to discuss cases with counsel and solicitors alike.
He is Certified by Cardiff School of Law and Politics as an Expert
2. Covid-19, Making Complex Contract Disputes
Even More Complex (expertwitness.co.uk)
Tel: 01274 550 600 (main); 01274 550848 (secretary)
Mobile: 07768 372748
Email: email@example.com - Website: www.profchrisraine.co.uk
Yorkshire Clinic, Bradford Road, Bingley, West Yorkshire, BD16 1HN
3. PART 25 - INTERIM REMEDIES AND
SECURITY FOR COSTS - Civil Procedure Rules
EXPERT WITNESS JOURNAL
O C TO B E R 2 0 2 1