Neumans LLP (A Firm) v Andrew Andronikou & Ors [2013] EWCA Civ 916 (24 July 2013)

Neumans LLP (A Firm) v Andrew Andronikou & Ors [2013] EWCA Civ 916 (24 July 2013)

Solicitors' fees incurred by a company in unsuccessfully opposing a winding up petition are not payable as an expense of an out of court administration unless expressly provided for in the Insolvency Rules 1986; such fees are only payable as an expense of the subsequent liquidation under rule 4.218(3)(h), and the court has no jurisdiction under s.51 Senior Courts Act 1981 or inherent jurisdiction to order otherwise.

Citation
[2013] EWCA Civ 916
Parties
Appellant: Neumans LLP; Respondents: Andrew Andronikou & Ors
Jurisdiction
England and Wales
Judgment Date
24 July 2013
Procedural Posture
Civil Appeal / Appeal From High Court (chancery Division, Companies Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Administration Expenses, Liquidation Expenses, Priority of Claims, Solicitors' Fees, Jurisdiction Under Insolvency Rules 1986, Section 51 Senior Courts Act 1981
Insolvency Law Company Law Administration Expenses Liquidation Expenses Priority of Claims Solicitors' Fees Jurisdiction Under Insolvency Rules 1986 Section 51 Senior Courts Act 1981

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 7 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Neumans LLP

Appellant

Andrew Andronikou & Ors

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court (chancery Division, Companies Court) to Court of Appeal

Legal Issues

  1. 1 Whether solicitors' fees incurred by a company in unsuccessfully opposing a winding up petition are payable as an expense of an out of court administration or only as an expense of subsequent liquidation
  2. 2 Whether the court has jurisdiction under s.51 Senior Courts Act 1981 or inherent jurisdiction to order payment of such fees as an administration expense

Ratio Decidendi

Solicitors' fees incurred by a company in unsuccessfully opposing a winding up petition are not payable as an expense of an out of court administration unless expressly provided for in the Insolvency Rules 1986; such fees are only payable as an expense of the subsequent liquidation under rule 4.218(3)(h), and the court has no jurisdiction under s.51 Senior Courts Act 1981 or inherent jurisdiction to order otherwise.

Court Disposition

Appeal dismissed

Orders

  • Affirmation of the High Court's order that solicitors' fees are not payable as an expense of the out of court administration but may be claimed as a liquidation expense under rule 4.218(3)(h) of the Insolvency Rules 1986