Lomas & Ors v Burlington Loan Management Ltd & Ors

Lomas & Ors v Burlington Loan Management Ltd & Ors

For the ISDA Master Agreement issues, the proceedings were more akin to a necessary application for directions in the interests of the general body of creditors, not adversarial litigation, and costs of SCG and GSI should be paid out of the LBIE administration estate, with SCG's costs limited to one firm of solicitors. For the GMA issues, the proceedings were adversarial commercial litigation brought by SCG for its own benefit, and the usual rule applies: SCG should pay Wentworth's costs.

Parties
Applicants: Anthony Victor Lomas, Stevens Anthony Pearson, Paul David Copley, Russell Downs, Julian Guy Parr (The Joint Administrators of Lehman Brothers International (Europe) (In Administration)); Respondent: Burlington Loan Management Limited; Respondent: CVI GVF (Lux) Master S. A. R. L; Respondent: Hutchinson Investors, LLC; Respondent: Wentworth Sons Sub-Debt S. A. R. L; Respondent: York Global Finance BDH, LLC; Respondent: Goldman Sachs International
Jurisdiction
England and Wales
Judgment Date
24 April 2018
Procedural Posture
Insolvency Application (costs Determination) / Post Judgment Costs Ruling
Outcome
Costs of SCG and GSI on ISDA Master Agreement issues to be paid out of the LBIE administration estate (SCG costs limited to one firm of solicitors); SCG to pay Wentworth's costs on GMA issues.
Legal Topics
Costs, Statutory Interest, Administration of Insolvent Estates, Interpretation of Pre Administration Contracts
Insolvency Civil Procedure Costs Statutory Interest Administration of Insolvent Estates Interpretation of Pre Administration Contracts

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Parties

Anthony Victor Lomas, Stevens Anthony Pearson, Paul David Copley, Russell Downs, Julian Guy Parr (The Joint Administrators of Lehman Brothers International (Europe) (In Administration))

Applicants

Burlington Loan Management Limited

Respondent

CVI GVF (Lux) Master S. A. R. L

Respondent

Hutchinson Investors, LLC

Respondent

Wentworth Sons Sub-Debt S. A. R. L

Respondent

York Global Finance BDH, LLC

Respondent

Goldman Sachs International

Respondent

Procedural Posture

Insolvency Application (costs Determination) / Post Judgment Costs Ruling

Legal Issues

  1. 1 Whether the costs of the Senior Creditor Group (SCG) and Goldman Sachs International (GSI) should be paid out of the LBIE administration estate or follow the event in accordance with the usual rule for adversarial litigation
  2. 2 Whether the costs relating to German Master Agreement (GMA) issues should be treated differently from those relating to ISDA Master Agreement issues

Ratio Decidendi

For the ISDA Master Agreement issues, the proceedings were more akin to a necessary application for directions in the interests of the general body of creditors, not adversarial litigation, and costs of SCG and GSI should be paid out of the LBIE administration estate, with SCG's costs limited to one firm of solicitors. For the GMA issues, the proceedings were adversarial commercial litigation brought by SCG for its own benefit, and the usual rule applies: SCG should pay Wentworth's costs.

Court Disposition

Costs of SCG and GSI on ISDA Master Agreement issues to be paid out of the LBIE administration estate (SCG costs limited to one firm of solicitors); SCG to pay Wentworth's costs on GMA issues.

Orders

  • SCG and GSI's costs on ISDA Master Agreement issues to be paid as an expense of the administration of LBIE, with SCG's costs limited to those as if only one firm of solicitors was retained.
  • SCG to pay Wentworth's costs on the GMA issues.