Oyston & Anor v Rubin & Anor [2021] EWHC 1120 (Ch) (04 May 2021)

Oyston & Anor v Rubin & Anor [2021] EWHC 1120 (Ch) (04 May 2021)

The court held that the receivers' hourly rates for fees are inclusive of VAT, not exclusive. Disbursements invoiced to DRP (the receivers' firm) are recoverable, as the contractual arrangements and conduct of the receivership made clear that DRP was engaged to provide services through the appointed receivers. The cap on fees is 5% of actual realisations (net of VAT), not of the outstanding judgment debt or potential realisations. Fees and disbursements incurred during the receivership but unpaid at discharge are recoverable from the receivership estate. Agents' fees are recoverable as disbursements. Pre-appointment legal costs and post-receivership fees/expenses are not generally...

Citation
[2021] EWHC 1120 (Ch)
Parties
Claimant/respondent: Owen Oyston; Claimant/respondent: Denaxe Limited (formerly Blackpool Football Club (Properties) Limited); Defendant/applicant: David Rubin; Defendant/applicant: Paul Cooper
Jurisdiction
England and Wales
Judgment Date
04 May 2021
Procedural Posture
Part 8 Claim and Application for Declaratory Relief in Receivership Proceedings / Judgment After Hearing of Substantive Issues
Outcome
Declaratory relief granted in part; account and surcharge claim determined; directions given for calculation and payment of fees and disbursements in accordance with judgment.
Legal Topics
Receivership, Remuneration of Receivers, Court Appointed Officers, Fiduciary Duties, Costs and Disbursements, Contract Interpretation
Insolvency Equity Commercial Law Receivership Remuneration of Receivers Court Appointed Officers Fiduciary Duties Costs and Disbursements +1 more

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Parties

Owen Oyston

Claimant/respondent

Denaxe Limited (formerly Blackpool Football Club (Properties) Limited)

Claimant/respondent

David Rubin

Defendant/applicant

Paul Cooper

Defendant/applicant

Procedural Posture

Part 8 Claim and Application for Declaratory Relief in Receivership Proceedings / Judgment After Hearing of Substantive Issues

Legal Issues

  1. 1 Whether receivers' fees are inclusive or exclusive of VAT
  2. 2 Whether disbursements invoiced to DRP and not to the receivers personally are recoverable
  3. 3 How the 'cap' on receivers' fees is calculated

Ratio Decidendi

The court held that the receivers' hourly rates for fees are inclusive of VAT, not exclusive. Disbursements invoiced to DRP (the receivers' firm) are recoverable, as the contractual arrangements and conduct of the receivership made clear that DRP was engaged to provide services through the appointed receivers. The cap on fees is 5% of actual realisations (net of VAT), not of the outstanding judgment debt or potential realisations. Fees and disbursements incurred during the receivership but unpaid at discharge are recoverable from the receivership estate. Agents' fees are recoverable as disbursements. Pre-appointment legal costs and post-receivership fees/expenses are not generally...

Court Disposition

Declaratory relief granted in part; account and surcharge claim determined; directions given for calculation and payment of fees and disbursements in accordance with judgment.

Orders

  • Receivers' fees to be calculated as inclusive of VAT and subject to a cap of 5% of actual realisations (net of VAT)
  • Disbursements invoiced to DRP are recoverable