Candey Ltd v Crumpler & Anor (Liquidators of Peak Hotels & Resorts Ltd) [2019] EWHC 282 (Ch) (15 February 2019)

Candey Ltd v Crumpler & Anor (Liquidators of Peak Hotels & Resorts Ltd) [2019] EWHC 282 (Ch) (15 February 2019)

The Liquidators' Application does not constitute proceedings within Article 4(c) of the LASPO Order, as recognition under CBIR does not confer the status of a liquidator of a company being wound up in England and Wales under Parts IV or V of the Insolvency Act 1986. Candey is not entitled to recover the success fee from the Liquidators under the exemption.

Citation
[2019] EWHC 282 (Ch)
Parties
Applicant/respondent: Candey Limited; Respondents/applicants: Russell Crumpler and Christopher Farmer (as Joint Liquidators of Peak Hotels & Resorts Limited (in Liquidation))
Jurisdiction
England and Wales
Judgment Date
15 February 2019
Procedural Posture
Insolvency Application and Charging Order / Judgment on Exemption Issue and Lien Application
Outcome
Exemption Issue decided in favour of the Liquidators; Candey not entitled to recover success fee under CFA from Liquidators.
Legal Topics
Conditional Fee Agreements, Solicitor's Lien, Cross Border Insolvency, Charging Orders, Recognition of Foreign Liquidators
Insolvency Company Law Costs Conditional Fee Agreements Solicitor's Lien Cross Border Insolvency Charging Orders Recognition of Foreign Liquidators

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Parties

Candey Limited

Applicant/respondent

Russell Crumpler and Christopher Farmer (as Joint Liquidators of Peak Hotels & Resorts Limited (in Liquidation))

Respondents/applicants

Procedural Posture

Insolvency Application and Charging Order / Judgment on Exemption Issue and Lien Application

Legal Issues

  1. 1 Whether the Liquidators' Application constitutes 'proceedings' within Article 4(c) of the LASPO Order for recovery of a success fee under a CFA
  2. 2 Whether Candey is entitled to a charging order under section 73 of the Solicitors Act 1974

Ratio Decidendi

The Liquidators' Application does not constitute proceedings within Article 4(c) of the LASPO Order, as recognition under CBIR does not confer the status of a liquidator of a company being wound up in England and Wales under Parts IV or V of the Insolvency Act 1986. Candey is not entitled to recover the success fee from the Liquidators under the exemption.

Court Disposition

Exemption Issue decided in favour of the Liquidators; Candey not entitled to recover success fee under CFA from Liquidators.

Orders

  • Exemption Issue: Application dismissed; success fee not recoverable from Liquidators under Article 4(c) of the LASPO Order.
  • Lien Application: Determination deferred or not granted on the facts presented.