Successfully ensuring a client’s costs are paid by creditor

Dean was instructed in the High Court to deal with the issue of costs in respect of an application for an injunction to prevent a winding-up petition being issued.

Dean acted for the purported debtor, against whom the purported creditor had issued a statutory demand. It was his client’s case that the debt was disputed – to the extent that no money was due – and that the purported creditor had issued the statutory demand in an attempt to pressure them into paying the sums – in full knowledge of the dispute.

Requests for the withdrawal of the statutory demand were ignored, so Dean’s client made the application for the injunction. However, on the same day, the purported creditor withdrew the statutory demand, refusing to pay the client’s costs as, due to an administrative error on behalf of the client, the withdrawal of the demand took place 7 days prior to the date the application was eventually issued.

The matter was listed for a hearing following which the purported creditor was ordered to pay Dean’s client’s costs in full.