Deutsche Trustee Company Ltd v & Ors

Deutsche Trustee Company Ltd v & Ors

The Collateral Manager must pay the Trustee's costs of and occasioned by the proceedings on the standard basis, as the Trustee was a necessary and proper party and its costs were adversarial. No order is made as to the Issuer's costs, which must be recovered under the contractual documentation. An interim payment of £180,000 is ordered on account of Napier's costs, and permission to appeal is granted to the Collateral Manager.

Parties
Claimant: Deutsche Trustee Company Limited; First Defendant: Duchess VI CLO B.V.; Second Defendant: Barings (UK) Limited; Third Defendant: Napier Park European Credit Opportunities Fund Limited
Jurisdiction
England and Wales
Judgment Date
28 March 2019
Procedural Posture
Civil Commercial/financial / Costs Ruling After Judgment
Outcome
Collateral Manager to pay Trustee's costs; no order as to Issuer's costs; interim payment ordered; permission to appeal granted.
Legal Topics
Costs, Trustee Neutrality, Interpretation of Transactional Documents, Interim Payments, Permission to Appeal
Commercial Law Trusts and Equity Financial Services Costs Trustee Neutrality Interpretation of Transactional Documents Interim Payments Permission to Appeal

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Parties

Deutsche Trustee Company Limited

Claimant

Duchess VI CLO B.V.

First Defendant

Barings (UK) Limited

Second Defendant

Napier Park European Credit Opportunities Fund Limited

Third Defendant

Procedural Posture

Civil Commercial/financial / Costs Ruling After Judgment

Legal Issues

  1. 1 Who should bear the costs of neutral parties in financial litigation involving trustees and issuers?
  2. 2 Should the Collateral Manager pay the Trustee's costs?
  3. 3 Appropriate interim payment on account of costs

Ratio Decidendi

The Collateral Manager must pay the Trustee's costs of and occasioned by the proceedings on the standard basis, as the Trustee was a necessary and proper party and its costs were adversarial. No order is made as to the Issuer's costs, which must be recovered under the contractual documentation. An interim payment of £180,000 is ordered on account of Napier's costs, and permission to appeal is granted to the Collateral Manager.

Court Disposition

Collateral Manager to pay Trustee's costs; no order as to Issuer's costs; interim payment ordered; permission to appeal granted.

Orders

  • No order as to costs of the Issuer.
  • Collateral Manager to pay Trustee's costs of and occasioned by the proceedings on the standard basis, to be assessed if not agreed.