Neumans LLP (a firm) v Andronikou & Ors [2012] EWHC 3088 (Ch) (02 November 2012)

Neumans LLP (a firm) v Andronikou & Ors [2012] EWHC 3088 (Ch) (02 November 2012)

Solicitors' fees incurred by Neumans LLP for work done for the company prior to administration in defending a winding up petition do not fall within the categories of administration expenses set out in the Insolvency Rules and cannot be treated as such by the court under section 51 of the Senior Courts Act 1981 or otherwise; the application to treat such fees as administration expenses is refused. However, such fees may be allowed as an expense of the liquidation, subject to the court's discretion and the availability of funds.

Citation
[2012] EWHC 3088 (Ch)
Parties
Applicant: Neumans LLP; Respondent (joint Administrator): Andrew Andronikou; Respondent (joint Administrator): Peter Kubik; Respondent (joint Administrator): Michael Kiely; Respondent (joint Liquidator): Geoffrey Carton-Kelly; Respondent (joint Liquidator): David Hudson
Jurisdiction
England and Wales
Judgment Date
02 November 2012
Procedural Posture
Insolvency Application / Judgment on Application to Determine Status of Solicitors' Fees as Administration or Liquidation Expense
Outcome
Application to treat solicitors' fees as administration expenses refused; fees may be allowed as liquidation expenses subject to the court's discretion.
Legal Topics
Administration Expenses, Liquidation Expenses, Priority of Claims, Costs Orders, Solicitors' Fees
Insolvency Company Law Administration Expenses Liquidation Expenses Priority of Claims Costs Orders Solicitors' Fees

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Parties

Neumans LLP

Applicant

Andrew Andronikou

Respondent (joint Administrator)

Peter Kubik

Respondent (joint Administrator)

Michael Kiely

Respondent (joint Administrator)

Geoffrey Carton-Kelly

Respondent (joint Liquidator)

David Hudson

Respondent (joint Liquidator)

Procedural Posture

Insolvency Application / Judgment on Application to Determine Status of Solicitors' Fees as Administration or Liquidation Expense

Legal Issues

  1. 1 Whether solicitors' fees incurred by Neumans LLP for work done for Portsmouth City Football Club Ltd prior to administration should be treated as an expense of the administration, the liquidation, or the CVA; whether the court has jurisdiction to order such fees as administration expenses under section 51 of the Senior Courts Act 1981 or relevant Insolvency Rules.

Ratio Decidendi

Solicitors' fees incurred by Neumans LLP for work done for the company prior to administration in defending a winding up petition do not fall within the categories of administration expenses set out in the Insolvency Rules and cannot be treated as such by the court under section 51 of the Senior Courts Act 1981 or otherwise; the application to treat such fees as administration expenses is refused. However, such fees may be allowed as an expense of the liquidation, subject to the court's discretion and the availability of funds.

Court Disposition

Application to treat solicitors' fees as administration expenses refused; fees may be allowed as liquidation expenses subject to the court's discretion.

Orders

  • Application to treat solicitors' fees as administration expenses refused.
  • Solicitors' fees may be allowed as an expense of the liquidation, subject to the court's discretion and availability of funds.