Tonstate Group Limited (in liquidation) & Others vs Gil Wojakowski & Fieldfisher LLP

[2024] EWHC 1196 (Ch)

Dispute over the validity of service and associated costs.


This case dealt with the validity of service and the associated costs in a dispute involving Tonstate Group Limited (in liquidation) and others against Gil Wojakowski and Field Fisher LLP.


TLDR:

  • Tonstate Group Limited and others filed a lawsuit involving service validity and costs.
  • The court examined whether service on Field Fisher LLP was valid after a Notice of Change was issued by Gil Wojakowski.
  • The court ruled in favor of Field Fisher LLP, awarding them costs.


The claimants, Tonstate Group Limited (in liquidation) and others, were involved in a legal dispute with Gil Wojakowski and Field Fisher LLP. The dispute arose when Field Fisher LLP, representing Gil Wojakowski, sought Bankers Trust relief. During the hearing, Gil Wojakowski objected to the court's jurisdiction and instructed his legal team to withdraw to avoid any submission affecting enforcement in Israel.


Following the hearing, Gil Wojakowski issued a Notice of Change, indicating that Field Fisher LLP had ceased to act for him and provided an address for service in Israel. This led to an issue regarding the validity of service of the court's order via Field Fisher LLP.


The claimants argued that the Notice of Change was defective as it did not provide a UK address for service, relying on CPR rules. Field Fisher LLP contested this, leading to further legal proceedings to resolve the issue.


The court had to determine whether the service on Field Fisher LLP was valid despite the Notice of Change. The claimants sought costs against both Gil Wojakowski and Field Fisher LLP, arguing that Field Fisher LLP should have accepted the service as valid.


Field Fisher LLP argued that they were no longer authorized to accept service on behalf of Gil Wojakowski and that the Notice of Change was not defective. The court found that the claimants' addition of Field Fisher LLP as a respondent was unjustified and that Field Fisher LLP was entitled to recover their costs.


The court awarded costs to Field Fisher LLP, recognizing that their position was not 'plainly wrong' and that they had acted reasonably in contesting the claimants' arguments. The court also noted that the claimants' approach was misguided, as Field Fisher LLP could not consent to a declaration on behalf of Gil Wojakowski.


In conclusion, the court ordered the claimants to pay Field Fisher LLP's costs, amounting to £45,000 plus VAT, acknowledging the importance of the issues to Field Fisher LLP and the reasonableness of their actions.



Legal representatives: Andrew Fulton KC (instructed by Rechtschaffen Law) for the Claimants, Matthew Parker KC (instructed by Field Fisher LLP) for the Second Respondent.

Judicial Panel: Mr. Justice Adam Johnson

Case Citation Reference: [2024] EWHC 1196 (Ch)

Tags
Insolvency Law Commercial Litigation Costs

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