Glass Slipper Ltd & Anor v (Rimson Flower Productions Ltd & Ors

Decision date: 20 May 2019

Neutral citation: [2019] EWHC 1273 (IPEC)

Overall AI summary confidence: high

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Short overview

This short overview is intended to summarise the case, issues and outcome so far as they are supported by the judgment.

AI confidence in this short overview: high

This case concerned two defendant applications: to strike out a re-filed claim as an abuse of process and to order a non-party (Ms Ann McGuire) to pay the defendants' costs. The court found the First Action had been struck out after Event 1 deliberately failed to pay ordered security despite prior assurances by Ms McGuire that the security could be raised, and held the present proceedings were a revival of that dispute and an abuse of process. The claim was struck out and a non-party costs order was made against Ms McGuire; defendants to serve an itemised costs schedule.

Ratio decidendi

This summary is intended to identify the ratio decidendi, meaning the legal reasons for deciding and the binding part of the decision.

AI confidence in this ratio decidendi summary: high

Where a second action seeks to revive the substance of a first action that was struck out because a party (or the effective real party) deliberately failed to comply with a peremptory order (here, to provide security), the second action can amount to an abuse of process warranting strike-out. Further, a non-party who in substance controls or benefits from the litigation and has been warned of potential liability may be ordered to pay the successful party's costs.

Obiter dicta

This summary is intended to identify obiter dicta, meaning observations made by the way that were not necessary to deciding the case and are not binding.

AI confidence in this obiter dicta summary: medium

The judgment suggested that a claimant who asserts inability to comply with a security-for-costs order bears a strong evidential burden and should produce comprehensive evidence of all funding sources to rebut earlier statements to the court. It also noted that pro bono assistance, while commendable, does not relieve the need for relevant evidence or submissions on material points such as prior warnings about non-party costs.

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