Deutsche Trustee Company Ltd v & Ors [2019] EWHC 964 (Ch) (28 March 2019)

Deutsche Trustee Company Ltd v & Ors [2019] EWHC 964 (Ch) (28 March 2019)

The Collateral Manager must pay the Trustee's costs of and occasioned by the proceedings, as the Trustee was a necessary and proper party and its costs were adversarial. The Issuer, having not participated, is not entitled to recover costs from other parties and must rely on contractual documentation.

Citation
[2019] EWHC 964 (Ch)
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
Costs Determination Following Substantive Judgment / Post Trial, Costs and Permission to Appeal
Outcome
Collateral Manager ordered to pay Trustee's costs; no order as to Issuer's costs; interim payments ordered; permission to appeal granted.
Legal Topics
Costs of Proceedings, Neutral Party Costs, Trustee Costs, Permission to Appeal
Commercial Law Trusts and Equity Financial Instruments Costs of Proceedings Neutral Party Costs Trustee Costs Permission to Appeal

Case Brief

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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

Costs Determination Following Substantive Judgment / Post Trial, Costs and Permission to Appeal

Legal Issues

  1. 1 Who should bear the costs of neutral parties in the proceedings?
  2. 2 Should the Collateral Manager pay the Trustee's costs?
  3. 3 Should the Issuer recover its costs from other parties?

Ratio Decidendi

The Collateral Manager must pay the Trustee's costs of and occasioned by the proceedings, as the Trustee was a necessary and proper party and its costs were adversarial. The Issuer, having not participated, is not entitled to recover costs from other parties and must rely on contractual documentation.

Court Disposition

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

Orders

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