The Background

The applicant, Laser Trust, had obtained three separate costs orders against CFL Finance Ltd (CFL), of which over £330,000 plus interest remained outstanding as CFL lacked the funds to pay it. Laser Trust made an application for a third party costs order against Colosseum Consulting Limited (Colosseum) as the litigation funder in the proceedings.

The Issues

The issues before Justice Smith were the extent of the control which Colosseum had over the litigation, and whether such control was so great that the “Arkin Cap” should not apply.

It was also put on record that on the same day the third party costs order was served on Colosseum, Colosseum's sole director placed the company into voluntary liquidation. As it was a voluntary liquidation, there was no stay or delay on the application, which proceeded as normal.