RE MAINTAIN PROFITS LTD

RE MAINTAIN PROFITS LTD

The Registrar refused the applications to reduce charge-out rates: the Law Society scale remains a valid benchmark and the applicants failed to demonstrate the claimed rates were unreasonable; applying the seven factors and reviewing experience and allocation of work, the Registrar upheld the hourly rates of Mr....

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Citation
RE MAINTAIN PROFITS LTD
Parties
Company (in Provisional Liquidation): Maintain Profits Limited; Company (in Provisional Liquidation): Myriad Gold Corporation; Company (in Provisional Liquidation): B.F. Construction Co. Ltd.; Solicitors Instructed by Provisional Liquidators (applicant for Review): Stephenson Harwood & Lo; Controller/related Party: Dr. Chan Shiu Chick; Controller/related Party: Madam Law Wai Duen Nina
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 April 2006
Case Number
HCCW691/2004
Procedural Posture
Companies Winding Up Proceedings / Taxation Review of Solicitors' Bills (decision on Hourly Rates)
Outcome
Application for review of charge-out rates refused in respect of the two fee-earners; costs of this review reserved pending decision on other items
Legal Topics
Hourly Rates, Law Society Scale, Order 62 Seven Factors, Provisional Liquidation, Solicitors' Fees Taxation
Source Language
en
Insolvency Costs and Taxation Civil Procedure Professional Conduct Hourly Rates Law Society Scale Order 62 Seven Factors Provisional Liquidation +1 more

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Parties

Maintain Profits Limited

Company (in Provisional Liquidation)

Myriad Gold Corporation

Company (in Provisional Liquidation)

B.F. Construction Co. Ltd.

Company (in Provisional Liquidation)

Stephenson Harwood & Lo

Solicitors Instructed by Provisional Liquidators (applicant for Review)

Dr. Chan Shiu Chick

Controller/related Party

Madam Law Wai Duen Nina

Controller/related Party

Procedural Posture

Companies Winding Up Proceedings / Taxation Review of Solicitors' Bills (decision on Hourly Rates)

Legal Issues

  1. 1 Whether the hourly rates claimed by the solicitors exceed reasonable market rates
  2. 2 Whether the Law Society scale remains the appropriate benchmark
  3. 3 How Paragraph 2 Part II of the First Schedule to Order 62 (the seven factors) applies to fixing hourly rates in Hong Kong

Ratio Decidendi

The Registrar refused the applications to reduce charge-out rates: the Law Society scale remains a valid benchmark and the applicants failed to demonstrate the claimed rates were unreasonable; applying the seven factors and reviewing experience and allocation of work, the Registrar upheld the hourly rates of Mr. Kemp at HKD 4,200 and Mr. Stranger at HKD 2,100.

Court Disposition

Application for review of charge-out rates refused in respect of the two fee-earners; costs of this review reserved pending decision on other items

Orders

  • Application to review hourly rates refused
  • Costs of the review reserved until decision on other items in taxation