RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND OTHERS

RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND OTHERS

When taxing solicitors' bills under Rule 179 the Registrar may reduce hourly rates agreed between a liquidator and his solicitors if those rates are not reasonable for payment out of the company estate; the estate will only be charged amounts the Court considers proper and reasonable (agreements bind the client but do not fetter the Court's power to scrutinize payments from the estate).

Citation
RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND OTHERS
Parties
Company: Peregrine Investments Holdings Limited; Company: Peregrine Fixed Income Limited; Company: Peregrine Derivatives Limited; Liquidator: Liquidators; Solicitor: Clifford Chance; Solicitor: Deacons, Graham & James
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 August 1999
Case Number
HCCW32/1998
Procedural Posture
Taxation of Solicitors' Bills Under Rule 179 Companies (winding Up) Rules / Decision on Review of Hourly Rates (reasons for Decision on Taxation Handed Down 12 August 1999)
Outcome
Request for review of the Registrar's reductions declined; reductions to hourly rates upheld.
Legal Topics
Liquidator's Disbursements, Taxation of Costs, Allowable Hourly Rates, Solicitor and Own Client Basis, Rule 179 Companies (winding Up) Rules
Source Language
EN
Company Law Insolvency Costs Law Civil Procedure Liquidator's Disbursements Taxation of Costs Allowable Hourly Rates Solicitor and Own Client Basis +1 more

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Parties

Peregrine Investments Holdings Limited

Company

Peregrine Fixed Income Limited

Company

Peregrine Derivatives Limited

Company

Liquidators

Liquidator

Clifford Chance

Solicitor

Deacons, Graham & James

Solicitor

Procedural Posture

Taxation of Solicitors' Bills Under Rule 179 Companies (winding Up) Rules / Decision on Review of Hourly Rates (reasons for Decision on Taxation Handed Down 12 August 1999)

Legal Issues

  1. 1 Whether the Registrar in Rule 179 taxation can reduce hourly rates agreed between liquidator and solicitors
  2. 2 What hourly rates are reasonable for various fee earners (trainees, unqualified staff, para‑legal)
  3. 3 Whether Law Society Circular rates apply only to party and party taxation

Ratio Decidendi

When taxing solicitors' bills under Rule 179 the Registrar may reduce hourly rates agreed between a liquidator and his solicitors if those rates are not reasonable for payment out of the company estate; the estate will only be charged amounts the Court considers proper and reasonable (agreements bind the client but do not fetter the Court's power to scrutinize payments from the estate).

Court Disposition

Request for review of the Registrar's reductions declined; reductions to hourly rates upheld.

Orders

  • Review request declined
  • Allowable hourly rate for trainee solicitors set at HKD 1300 per hour