Leeds United Association Football Club, Re The [2007] EWHC 1761 (Ch) (25 July 2007)

Leeds United Association Football Club, Re The [2007] EWHC 1761 (Ch) (25 July 2007)

Damages for wrongful dismissal are not payable as expenses of the administration, do not have super-priority under paragraph 99 of Schedule B1 of the Insolvency Act 1986, and do not qualify as necessary disbursements under Rule 2.67 of the Insolvency Rules 1986.

Citation
[2007] EWHC 1761 (Ch)
Parties
Claimant: Richard Dixon Fleming; Claimant: Mark Granville Firman; Claimant: Howard Smith; Defendant: David Healy; Defendant: Jonathan Douglas; Defendant: Kevin Nicholls; Defendant: Jermaine Beckford
Jurisdiction
England and Wales
Judgment Date
25 July 2007
Procedural Posture
Application for Declaration in Administration Proceedings / Judgment on Application
Outcome
Declaration granted as sought by the administrators.
Legal Topics
Administration Expenses, Wrongful Dismissal, Priority of Claims, Contracts of Employment
Insolvency Employment Administration Expenses Wrongful Dismissal Priority of Claims Contracts of Employment

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Parties

Richard Dixon Fleming

Claimant

Mark Granville Firman

Claimant

Howard Smith

Claimant

David Healy

Defendant

Jonathan Douglas

Defendant

Kevin Nicholls

Defendant

Jermaine Beckford

Defendant

Procedural Posture

Application for Declaration in Administration Proceedings / Judgment on Application

Legal Issues

  1. 1 Are damages for wrongful dismissal payable as expenses of administration?
  2. 2 Do damages for wrongful dismissal have super-priority under paragraph 99 of Schedule B1 of the Insolvency Act 1986?
  3. 3 Do damages for wrongful dismissal qualify as necessary disbursements under Rule 2.67 of the Insolvency Rules 1986?

Ratio Decidendi

Damages for wrongful dismissal are not payable as expenses of the administration, do not have super-priority under paragraph 99 of Schedule B1 of the Insolvency Act 1986, and do not qualify as necessary disbursements under Rule 2.67 of the Insolvency Rules 1986.

Court Disposition

Declaration granted as sought by the administrators.

Orders

  • Liability in respect of wrongful dismissal subsequent to adoption of the contract of employment does not rank as an expense in the administration.
  • Damages for wrongful dismissal are not payable as expenses of the administration, do not have super-priority, and do not qualify as necessary disbursements.