A judge in Scotland has rejected a request from Leonard Cheshire Disability that a small technology company, which is suing it for more than £430,000, should stump up £75,000 in costs in case the charity wins.
The technology company This-Tel is taking legal action against the charity in a dispute over payment for the provision of digital pens, which allow data to be entered automatically into a database.
At a hearing yesterday at the Court of Session, the highest civil court in Scotland, Lord Hodge dismissed LCD’s request that This-Tel make a payment into court of £75,000, which the charity could claim towards its legal costs if it wins the case.
Steve Forsyth, managing director of This-Tel, said it was disappointing that charitable funds were being used to pay legal costs.
A spokeswoman for Leonard Cheshire Disability said: "Leonard Cheshire Disability is aiming to resolve this contractual dispute as fairly as possible and our offer to enter into mediation remains open. We are unable to comment further because this is an ongoing court case."
The next hearing in the dispute is due to take place on 28 June.