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Directors and Shareholders of accident management company ordered to personally pay Defendant's costs.

Date:

20th July 2010

Team:

Civil, Civil Fraud,

Premier Accident Management UK (Yorkshire) LTD ('PAM') issued proceedings against one of its hirers to recover hire charges. Proceedings were issued shortly after HMRC had presented a petition to wind up PAM. PAM was wound up shortly after the claim was issued. The directors and shareholders of PAM (Mohammed Shokat, Mohammed Sageer and Shazad Hussain) continued to conduct litigation after PAM had been liquidated without consent of the Court.

Upon learning that PAM was in liquidation the Defendant applied to amend his Defence. Solicitors for PAM applied to come off the record and the claim was struck out.

The Defendant successfully applied for the directors and shareholders of PAM to be joined as parties to the proceedings for the purposes of costs only. Thereafter the Defendant applied for the directors and shareholders of PAM to pay his costs incurred in defending the claim brought by PAM.

At the final hearing the directors and shareholders of PAM were ordered personally to pay the Defendant's costs in excess of £10,000.

Richard Paige of Sovereign Chambers represented the Defendant hirer in securing the costs order.