Member Login

Liquidator entitled to 80% of its costs in application seeking directions for management of company’s affairs

By: Ian Fitzharris BL

or click here to request site subscription to search and view all judgments

High Court, ruling on a costs application following delivery of its principal judgment, makes a series of costs orders and finds, principally, that: the liquidator of insolvent companies is entitled to 80% of its legal costs for the bringing of a statutory application to the Court for directions in the management of the companies' affairs; that his costs of bringing the application are to be treated as costs of the winding up of the companies and that the 'event' for costs purposes was the finding in the Court's own principal judgment that the costs of certain remedial orders; and costs of related Circuit Court proceedings were largely not to be treated as costs and expenses carrying priority in the liquidation.

Costs application - proceedings seeking court directions for exercise of powers of liquidator - appellate proceedings from grant of mareva injunction - questions to be determined - costs of application under section 631 of Companies Act - costs of appeal by liquidator of Circuit Court order granting mareva injunction - costs of leave application to High Court to disburse monies on foot of Circuit Court costs order - measurement of portion of Circuit Court proceedings deemed as costs and expenses in winding up of companies - liquidator to be granted order for his costs of bringing application for directions to be treated as costs in winding up of companies - Order 99, rule 1 RSC - whether application inter partes or more akin to judicial review / statutory application - application pursuant to section 631 of the Companies Act is to be treated as litigation in respect of which a court may identify an 'event' for the purposes of Order 99, rule 1 RSC - Circuit Court judgment finding costs of remedial orders and costs of Circuit Court proceedings were not to be treated as costs and expenses carrying priority in the liquidation - whether liquidator raised matters of considerable public importance and that that element of public importance displaces the rule that costs follow the event - matters raised were not of some legal novelty - liquidator entitled to 80% of costs against company - mareva injunction and application for sequestration and attachment inappropriate given order of High Court (Barrett J.) requiring parties to seek directions - appeal took up no time or additional resources - no order as to costs on the appeal - costs of leave application to be deemed a cost and expense in liquidation given conclusions of principle judgment - measurement of Circuit Court proceedings as may reasonably be attributable to the costs of prosecuting claim for specific performance of management company agreement - costs to be measured with a degree of close scrutiny - degree of legal and factual complexity.

Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.

Leave a Comment

Your email address will not be published. Required fields are marked *