RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND OTHERS

RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND OTHERS

The Registrar under Rule 179 may review and reduce hourly rates agreed between a liquidator and his solicitors because fees are paid from the company estate and must be justified; accordingly the Registrar declined the solicitors' request to maintain higher agreed rates and reduced the allowable hourly rates for trainee solicitors to HK$1300 and for the identified paralegal (TGS) to HK$1000 when taxing the bills.

Citation
RE PEREGRINE INVESTMENTS HOLDINGS LTD. AND OTHERS
Parties
Company (in Liquidation): Peregrine Investments Holdings Limited; Company (in Liquidation): Peregrine Fixed Income Limited; Company (in Liquidation): Peregrine Derivatives Limited; Liquidators for the Companies: Liquidators; Solicitors for the Liquidators: Clifford Chance; Solicitors for the Liquidators: Deacons, Graham & James
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
12 August 1999
Case Number
HCCW22/1998
Procedural Posture
Companies Winding Up (taxation of Costs) / Taxation of Solicitors' Bills; Reasons for Decision on Review Request
Outcome
Request for review of taxation decision declined; reductions to hourly rates upheld
Legal Topics
Liquidator's Disbursements, Solicitor's Fees, Hourly Rates, Rule 179 Taxation, Law Society Circular Rates
Source Language
EN
Company Law Insolvency Costs and Taxation Professional Conduct of Solicitors Liquidator's Disbursements Solicitor's Fees Hourly Rates Rule 179 Taxation +1 more

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 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Peregrine Investments Holdings Limited

Company (in Liquidation)

Peregrine Fixed Income Limited

Company (in Liquidation)

Peregrine Derivatives Limited

Company (in Liquidation)

Liquidators

Liquidators for the Companies

Clifford Chance

Solicitors for the Liquidators

Deacons, Graham & James

Solicitors for the Liquidators

Procedural Posture

Companies Winding Up (taxation of Costs) / Taxation of Solicitors' Bills; Reasons for Decision on Review Request

Legal Issues

  1. 1 Whether the Registrar under Rule 179 can review and reduce hourly rates agreed between liquidator and solicitors
  2. 2 Whether solicitor-and-own-client basis (O.62 r.29 RHC) prevents reduction of rates charged to a liquidator from the estate
  3. 3 Whether Law Society Circular rates are authoritative and applicable to Rule 179 taxations

Ratio Decidendi

The Registrar under Rule 179 may review and reduce hourly rates agreed between a liquidator and his solicitors because fees are paid from the company estate and must be justified; accordingly the Registrar declined the solicitors' request to maintain higher agreed rates and reduced the allowable hourly rates for trainee solicitors to HK$1300 and for the identified paralegal (TGS) to HK$1000 when taxing the bills.

Court Disposition

Request for review of taxation decision declined; reductions to hourly rates upheld

Orders

  • Review request declined
  • Allowable hourly rate for trainee solicitors set at HK$1300 per hour for purposes of taxation from the estate