A finding that a non-party propounded proceedings knowing them to be false requires clear and compelling evidence beyond mere rejection of the party's evidence; something more than rejection is needed before a positive finding of deliberate falsehood can be made. Where a non-party costs order is based on unreasonable conduct in maintaining proceedings, the order should only cover the period from when the non-party should reasonably have concluded the proceedings had no prospects — it does not 'travel back' to cover earlier costs. A director who manages litigation for an impecunious company and has a financial interest as creditor and indirect shareholder may be liable for non-party costs where, acting reasonably, the director should have concluded the proceedings had no reasonable prospects of success.
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