Can a court order costs against someone who funded a party's litigation but wasn't a party themselves?
In limited circumstances, yes. While costs orders are normally made against the actual parties to a case, a court retains discretion in appropriate situations to order costs against someone who isn't a party but who played a significant role in funding or directing the litigation, particularly where that person had a real interest in the outcome and effectively controlled how the case was conducted, rather than simply being a family member offering ordinary financial support.
This kind of order is uncommon and generally reserved for situations where the non-party's involvement went well beyond simply helping pay legal bills, such as directing litigation strategy in a way that caused unnecessary costs, or where the arrangement appears designed to shield the real party in interest from a costs award. Courts weigh this carefully, since ordinary family support, such as a parent helping an adult child pay for a lawyer, isn't itself grounds for a costs order against the person who helped. Anyone concerned about a non-party's role in funding the other side's litigation should raise it with their lawyer, since establishing this kind of claim requires specific evidence about that person's actual involvement and control.
Key takeaways
- Costs orders can, in limited circumstances, be made against a non-party who funded or controlled litigation.
- This is uncommon and requires more than ordinary family financial support.
- It typically applies where the non-party had a real interest in the outcome and directed the litigation.
- Establishing this kind of claim requires specific evidence about that person's actual role.