Ord and Another v Belhaven Pubs Ltd
| Jurisdiction | England & Wales |
| Judgment Date | 13 February 1998 |
| Date | 13 February 1998 |
| Court | Court of Appeal (Civil Division) |
Court of Appeal
Before Lord Justice Hobhouse, Lord Justice Brooke and Sir John Balcombe
Practice - power to order person to be made party - company cannot be substituted
The discretion given by Order 15, rule 7(2) of the Rules of the Supreme Court to order a person to be made a party to proceedings was a wide one but it was not wide enough to cover the situation where a plaintiff wished to substitute, in place of the defendant, either a company which was in the same ownership as, or a company which was the shareholder of the defendant company.
The Court of Appeal so held in allowing an interlocutory appeal by the defendant, Belhaven Pubs Ltd, against an order of Judge Alton, sitting as a deputy High Court judge, in August 1997, substituting Ascot Holding plc for
the defendant, in an action, inter alia, for rescission of a contract to acquire a lease of the Fox Inn, Stanford, brought by the plaintiffs, Mr and Mrs Ord.
Order 15, rule 7 provides: "(2) Where at any stage of the proceedings in any cause or matter the interest of any party is assigned or transmitted to or devolves upon some other person, the court may, if it thinks it necessary in order to ensure that all matters in dispute in the cause or matter may be effectually and completely determined and adjudicated upon, order that other person to be made a party to the cause or matter and the proceedings to be carried on as if he had been substituted for the first mentioned party."
Mr John Brisby, QC and Mr Barry Stancombe for Belhaven Pubs; Mr Michael Ashe, QC and Mr Richard Wilson for Mr and Mrs Ord.
LORD JUSTICE HOBHOUSE said that the plaintiffs' summons asking for leave to substitute Ascot Estates plc and/or Ascot Holdings plc for the defendant seemed to have arisen from their appreciation that the defendant no longer had substantial assets. The two companies were respectively the parent company of the defendant and another subsidiary company.
Judge Alton...
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