Blake Morgan has successfully advised in a significant High Court costs decision arising from the long‑running litigation brought by the administrators of Thomas Barnes & Sons PLC. Litigation Legal Director, Joe Cowles, instructed barrister Martyn Griffiths on behalf of Blackburn with Darwen Borough Council. The Council has now successfully defended a £1.7 million claim and secured a favourable judgment on a non‑party costs application, reinforcing the robustness of its position throughout the dispute.
This outcome builds on the Council’s earlier success at trial in October 2022, when the High Court dismissed the claim in full – originally valued at more than £3 million – following an 11‑day trial in the Technology and Construction Court. The claim concerned allegations of wrongful termination of the construction contract for the Blackburn Bus Station. His Honour Judge Stephen Davies found that the Council had been entitled to terminate the contract and that the claimant had “no prospect of recovering anything in this litigation”.
Following that success, Blake Morgan continued to act for the Council in recovering its costs, which included a non‑party costs application, which arose because the failed litigation had been funded by debenture holders of the insolvent claimant. In a judgment handed down in January 2026, the HHJ Stephen Davis (sitting as a High Court Judge) concluded that it was just to make a non-party costs order against the debenture holders as they had funded the claim, stood to benefit financially from a successful outcome and one of the debenture holders had controlled the litigation. They were therefore the “real parties” to the litigation and should bear the Council’s unrecovered costs. This decision represents an important application of the law on non‑party costs and confirms that creditors funding litigation for their own benefit are exposed to the risk of cost liability. The result will enable the Council to continue recovering the substantial expenditure incurred in defending the claim.
This latest success was led by litigator Joe Cowles, who oversaw the costs application, drawing on his expertise in strategic litigation and complex recovery actions. He was assisted by Construction solicitor Nivi Vaijayanthimala. The original trial work was conducted by Blake Morgan’s specialist Construction team, whose technical insight and detailed understanding of high‑value construction disputes were pivotal in securing the 2022 result.
Commenting on the decision, Joe Cowles said:
"We are very pleased with the Court’s judgment. This has been a long and hard fought case, and today’s outcome vindicates the Council’s position. Non-party costs applications are never straightforward, and this case was no different. We are delighted to have helped the Council to secure a great outcome, which protects public finances. The judgment will serve as a useful authority on the principles for determining non-party costs applications involving secured creditors who have funded failed litigation."
A spokesperson for Blackburn with Darwen Borough Council added:
"The Council is very pleased with the High Court judgment on application for a Non Party Cost Order, which now enables it to continue with the recovery of the substantial costs it incurred in successfully defeating a claim brought on by Thomas Barnes & Sons following an 11 day trial at the High Court in October 2022. The Council should not be left to bear the financial burden when it had to strongly defend a long running multi million pound claim, which was meritless. The judgment supports the Council in protecting local taxpayers and reinforces the principle that public bodies should not be exposed to unrecovered legal costs where claims are pursued for private financial gain."
This result underscores Blake Morgan’s market‑leading expertise in complex construction and public‑sector litigation and its commitment to delivering exceptional outcomes for clients facing high‑value, high‑stakes disputes.
