Costs risks and credit hire – Law Society’s Gazette
‘In Kindertons Ltd v Murtagh [2024] EWHC 471 (KB), which we examined in a July 2024 article (see tinyurl.com/29jetu66), the High Court upheld a non-party costs order (NPCO) against a credit hire company. The decision confirmed that the financial interest and control exercised by credit hire providers over proceedings can justify such orders, even in the absence of ‘but for’ causation. Turner J emphasised that the key test is whether justice requires such an order, with the credit hire company’s commercial interest and structural control over litigation being decisive factors. The Court of Appeal has now revisited and expanded upon these principles in the conjoined appeals of Tescher v Direct Accident Management Ltd and AXA Insurance UK Plc v Spectra Drive Ltd [2025] EWCA Civ 733. These judgments represent the most comprehensive appellate authority to date on the applicability of NPCOs in the context of credit hire litigation.’
Law Society's Gazette, 27th June 2025
Source: www.lawgazette.co.uk