Joanna Lemos & Ors v Church Bay Trust Company & Ors

Facts

The three Claimants brought a claim under section 423 of the Insolvency Act 1986 against the Defendants, Church Bay Trust Company, Roderick Forrest and Kalliopi Lemos. After a trial from 22 June to 4 July 2023, the claim was dismissed. A consent order dated 18 October 2023 required the Claimants to pay the Defendants' costs on the standard basis, with £957,814 payable on account. The First Claimant later settled separately. BCR Legal Assist Limited was the ATE insurer of the Second and Third Claimants, with a £1m limit of indemnity. From November 2023 an associated company, BCR Costs Limited, took over the costs negotiations and prepared points of dispute to a bill of £1,655,531.11. BCR Legal Assist Limited was added as an interested party by consent order on 14 August 2025. It then argued a preliminary issue about the effect of earlier costs budgeting orders, which the Costs Judge decided in the Defendants' favour on 18 November 2025. The Defendants then offered to accept the sum already paid on account. That offer was accepted once Gowlings resumed conduct on 15 January 2026. The Second and Third Claimants, supported by the Defendants, then applied for an order that BCR Legal Assist Limited be jointly and severally liable for the Defendants' costs of assessment, with a 100% contribution between themselves and BCR. They blamed its conduct for those costs.