Neumans LLP (a firm) v Andronikou & Ors

Neumans LLP (a firm) v Andronikou & Ors

Solicitors' fees incurred prior to administration do not qualify as administration expenses under rule 2.67, nor can court direct payment as such under section 51 Senior Courts Act 1981 or inherent jurisdiction; however, fees for work done in connection with winding up petition, as particularised, are allowed as expenses of the liquidation under rule 4.218(3)(h).

Parties
Applicant: Neumans LLP; Respondent: Andrew Andronikou; Respondent: Peter Kubik; Respondent: Michael Kiely; Respondent: Geoffrey Carton-Kelly; Respondent: David Hudson
Jurisdiction
England and Wales
Judgment Date
02 November 2012
Procedural Posture
Insolvency Application / Judgment on Application for Determination of Fees as Administration/liquidation/cva Expense
Outcome
Application dismissed as regards administration and CVA expenses; allowed as regards liquidation expenses for specified work.
Legal Topics
Administration Expenses, Liquidation Expenses, Court's Power to Direct Payment, Priority of Claims, Costs Orders, Lundy Granite Principle
Insolvency Company Law Administration Expenses Liquidation Expenses Court's Power to Direct Payment Priority of Claims Costs Orders Lundy Granite Principle

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Parties

Neumans LLP

Applicant

Andrew Andronikou

Respondent

Peter Kubik

Respondent

Michael Kiely

Respondent

Geoffrey Carton-Kelly

Respondent

David Hudson

Respondent

Procedural Posture

Insolvency Application / Judgment on Application for Determination of Fees as Administration/liquidation/cva Expense

Legal Issues

  1. 1 Whether solicitors' fees incurred prior to administration are an expense of the administration
  2. 2 Whether solicitors' fees are an expense of the liquidation
  3. 3 Whether solicitors' fees are an expense of the CVA

Ratio Decidendi

Solicitors' fees incurred prior to administration do not qualify as administration expenses under rule 2.67, nor can court direct payment as such under section 51 Senior Courts Act 1981 or inherent jurisdiction; however, fees for work done in connection with winding up petition, as particularised, are allowed as expenses of the liquidation under rule 4.218(3)(h).

Court Disposition

Application dismissed as regards administration and CVA expenses; allowed as regards liquidation expenses for specified work.

Orders

  • Solicitors' fees not an expense of administration under rule 2.67.
  • Solicitors' fees not an expense of CVA under rule 1.23(2).