High Court to hear application by Bula's former chairman over costs

An application by the former chairman of Bula Resources to vary a court order freezing his assets worldwide so he may pay a £50,000 (€63,492) bill for legal costs will come before the High Court this week.

Ms Justice Macken yesterday agreed to an application by Mr Michael Cush SC, for Bula Resources Holdings plc, to adjourn Mr James Stanley's application to tomorrow when the court will deal with Bula's application for an interlocutory order freezing his assets worldwide.

An interim order was granted eight months ago. It contained a proviso for the payment of £750 weekly to Mr Stanley towards his living and legal expenses and a further condition that the weekly sum might be increased with the consent of Bula's solicitors.

In court yesterday, Mr Cush said the present application to vary the worldwide injunction to pay out £50,000 was grounded on a short affidavit from Mr Stanley which was sworn last December. Despite that, this application was being made two days before the interlocutory hearing.

Counsel said Mr Stanley's affidavit outlined that he had taken judicial review proceedings seeking to quash the report of the inspector, Mr Lyndon McCann, into the beneficial ownership of shares in Bula Resources or aspects of that report. Mr Stanley had said he had received an interim bill for £50,000 for legal costs and he required to have access to assets which were frozen.

The High Court had refused leave to Mr Stanley to challenge the inspector's report and the Supreme Court had upheld that refusal, Mr Cush said. On its face, the legal bill presented by Mr Stanley appeared to relate to the judicial review and the present proceedings, counsel said.

There was an issue whether the costs of the unsuccessful judicial review proceedings come within the rationale of the variation order being sought by Mr Stanley, counsel said. The court had insufficient information from Mr Stanley to address that issue.

Mr Cush said this was also a case where the bona fides of Mr Stanley were at issue. His clients were alleging fraud and deceit on the part of the former Bula chairman. An application such as the present one had to be grounded on more than bald statements. Mr Stanley was saying the £750 per week was insufficient and he should say something about the money which Mr McCann had found, as a fact, that he had already received.

Mr James Gilhooly SC, for Mr Stanley, strongly objected to any attempt by Mr Cush to refer to any part of the inspector's report which he would be contending was inadmissible. He said Mr Stanley had a lawful debt due in legal costs and there was no reason why he should be prevented from paying it.

Ms Justice Macken adjourned the matter until tomorrow when it could be dealt with by the judge hearing Bula's interlocutory application.