legal costs debt, who is it owed to? is it enforcable?

[i.dan]

A dispute between myself and my other shareholders of our freehold management company resulted in a court case. The company at the time was dormant, but employed the services of a legal firm to defend the claim. The legal firm warned the claimant of the costs he would owe if the case was lost. And those costs were in the 10's of thousands. And extreme charge for such a small issue. However the case did go to trial and the Judge preferred the case of the council for the defense against the claimant acting as litigant in person. The judge order the defendant to pay the defense costs. The issue then became one of whether a dormant company could employ the services of a legal firm. and therfore whether the costs were enforceable. The Company declared as dormant again in its returns to companies house in 2023. In 2024 it declared as active and with debts owing of £30,000. The debts were not explained or detailed. The accounts were filleted. the company directors refused to provide full accounts.The debt they have filed is greated than the legal costs and does not match any associated cost. Meanwhile the legal firm are invoicing the claimant for the costs.

It would seem that the company did not pay the legal firm the costs.
Or that they may have paid some but not all of the costs.
The company was dormant at the time of the case.
The directors refuse to show full accounts.

I dont know know if this is the right way to summarise the question, but something like -
Can a debt claimed by the company be enforceable if the creditor itself has not paid those legal fees?
Or can they only claim what they have actually paid?

[atticus]

You are mixing 2 things.

1. "Can a debt claimed by the company be enforceable if the creditor itself has not paid those legal fees?" Yes, if the creditor is liable to pay those fees.
2. "can they only claim what they have actually paid?". See answer 1, but they cannot claim more than the creditor is liable to pay - that is called the "indemnity principle".