The court considered whether a superior court has jurisdiction to order costs against a non-party beyond the traditional "person of straw" scenario.
The respondent Azzopardi caused his company (131) to commence an action against the appellant for breach of contract and unjust enrichment arising from alleged tax consulting services.
The trial judge dismissed both actions and refused to award costs against Azzopardi personally, finding that 131 was not a person of straw put forward to shield Azzopardi from costs liability.
The Court of Appeal allowed the appeal, holding that courts have inherent jurisdiction to order costs against non-parties who commit abuse of process, separate from and broader than the statutory "person of straw" test.
The court found that Azzopardi's conduct in bringing a fictitious action through a nominal plaintiff constituted an abuse of process warranting a costs award against him personally.