OCM Maritime Nile Llc & Anor v Courage Shipping Co & Ors

Charles Holroyd (instructed by Reed Smith LLP) for the Claimants The Defendants were not represented and did not appear Hearing date: 26 September 2022 ____________________

(i)�"An order against a non-party is exceptional and it will only be made if it is just to do so in all the circumstances of the case �";

(ii) "The touchstone is whether, despite not being a party to the litigation, the director can fairly be described as 'the real party to the litigation'�";

(iii) "In the case of an insolvent company involved in litigation which has resulted in a costs liability that the company cannot pay, a director of that company may be made the subject of such an order. Although such instances will necessarily be rare �, s.51 orders may be made to avoid the injustice of an individual director hiding behind a corporate identity, so as to engage in risk-free litigation for his own purposes ...";

(v) "In this way, matters such as the control and/or funding of the litigation, and particularly the alleged personal benefit to the director of so doing, are helpful� indicia �as to whether or not a s.51 order would be just. But they remain merely elements of the guidance given by the authorities, not a checklist that needs to be completed in every case �";