FRED LEE v. LIU MAN HOO

FRED LEE v. LIU MAN HOO

The court applied the normal rule that a successful bankrupt is entitled to costs for resisting a trustee's suspension application; the Trustee was found to have acted unreasonably and failed to carry out proper investigation and balance the overall circumstances, so the Trustee must personally pay the bankrupt's costs and may not recoup them from the estate. Ritter v Godfrey exceptions did not apply on the facts.

Citation
FRED LEE v. LIU MAN HOO
Parties
Applicant (trustee): Fred Lee; Respondent (bankrupt): Liu Man Hoo
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
13 November 2007
Case Number
HCB11719/2002
Procedural Posture
Bankruptcy Proceedings / Decision on Costs (post Hearing)
Outcome
Costs order nisi varied: Trustee ordered personally to pay the Bankrupt's costs in the application and not to recoup those costs from the estate.
Legal Topics
Suspension Under Section 30 a, Costs Order, Trustee Personal Liability, Ritter V Godfrey Exceptions
Source Language
EN
Bankruptcy Civil Procedure Costs Trust Law Suspension Under Section 30 a Costs Order Trustee Personal Liability Ritter V Godfrey Exceptions

Case Brief

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Parties

Fred Lee

Applicant (trustee)

Liu Man Hoo

Respondent (bankrupt)

Procedural Posture

Bankruptcy Proceedings / Decision on Costs (post Hearing)

Legal Issues

  1. 1 Whether a bankrupt who resists a trustee's application to suspend running of time under Section 30A is entitled to costs
  2. 2 Whether costs should be paid out of the estate or by the trustee personally
  3. 3 Whether exceptions in Ritter v Godfrey displace the normal rule that costs follow the event

Ratio Decidendi

The court applied the normal rule that a successful bankrupt is entitled to costs for resisting a trustee's suspension application; the Trustee was found to have acted unreasonably and failed to carry out proper investigation and balance the overall circumstances, so the Trustee must personally pay the bankrupt's costs and may not recoup them from the estate. Ritter v Godfrey exceptions did not apply on the facts.

Court Disposition

Costs order nisi varied: Trustee ordered personally to pay the Bankrupt's costs in the application and not to recoup those costs from the estate.

Orders

  • Trustee Fred Lee to pay the costs of the Bankrupt in the application including the costs of the hearing on costs personally
  • Trustee shall not recoup his costs from the bankrupt's estate