Insolvency office-holders and adverse costs in litigation: personal liability, recoupment from the estate, discontinuance, priority of orders, and security for costs (England and Wales)
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Practice notes
This Practice Note sets out the following facets and issues concerning an office-holder’s exposure to adverse costs in litigation:
- the overall position where an office-holder is a claimant or a defendant in proceedings
- the office-holder’s entitlement to reimbursement from the insolvent estate
- the possible costs implications of discontinuing a claim
- the potential ranking of any adverse costs order
- the personal exposure of office-holders for adverse costs
- security for costs
The general position if an office-holder is a claimant or defendant in litigation
If an office-holder issues proceedings in their own name, they proceed entirely at their own risk as to costs. Should a costs order be made against them, they are personally liable and cannot confine that liability to the extent of assets available in the insolvent estate (Re Wilson Lovatt & Sons). However, unless the court directs otherwise, they will have a right to reimburse the amount of any adverse costs order from the insolvent estate. That right is, of course, only of value to the extent the estate holds assets...
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Web page updated on 21/05/2026
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Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...
I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...
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