McAteer v Randleswood (Approved) [2020] IEHC 173 (30 March 2020)

McAteer v Randleswood (Approved) [2020] IEHC 173 (30 March 2020)

The examiner's remuneration, costs, and expenses, as sanctioned by the court, rank in priority to certified liabilities under s.554(3) of the Companies Act 2014. The examiner is required to justify his claim with sufficient narrative and breakdown, but the level of detail must be proportionate. The examiner did not act irrationally or unreasonably in the conduct or duration of the examinership. There is no basis for apportioning costs to SCGL or for reducing the claim due to alleged prolongation. The application for approval and payment of the examiner's remuneration, outlay, and legal costs is granted, with the examiner's claims ranking ahead of certified liabilities.

Citation
[2020] IEHC 173
Parties
Applicant/examiner: Michael McAteer; Notice Party/creditor: Randelswood Holdings Limited; Company Under Examinership: Sammon Contracting Ireland Limited; Company Under Examinership: Sammon Contracting Group Limited; Company Under Examinership: Micheál Sammon Woodcraft Limited; Official Liquidator: Stephen Tennant
Jurisdiction
Ireland
Judgment Date
30 March 2020
Procedural Posture
Application Under Companies Act 2014 (s.554) / Judgment on Examiner's Application for Approval and Payment of Remuneration, Outlay, Legal Costs, and Determination of Priority
Outcome
Application granted
Legal Topics
Examinership, Remuneration of Examiner, Priority of Claims, Certified Liabilities, Liquidation, Court Approval of Costs
Insolvency Law Company Law Examinership Remuneration of Examiner Priority of Claims Certified Liabilities Liquidation Court Approval of Costs

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Parties

Michael McAteer

Applicant/examiner

Randelswood Holdings Limited

Notice Party/creditor

Sammon Contracting Ireland Limited

Company Under Examinership

Sammon Contracting Group Limited

Company Under Examinership

Micheál Sammon Woodcraft Limited

Company Under Examinership

Stephen Tennant

Official Liquidator

Procedural Posture

Application Under Companies Act 2014 (s.554) / Judgment on Examiner's Application for Approval and Payment of Remuneration, Outlay, Legal Costs, and Determination of Priority

Legal Issues

  1. 1 Whether examiner's remuneration, costs, and expenses rank in priority to certified liabilities under s.529 of the Companies Act 2014
  2. 2 Whether the examiner provided sufficient evidence to justify the remuneration and costs claimed
  3. 3 Whether the examiner exceeded his powers in engaging with potential investors

Ratio Decidendi

The examiner's remuneration, costs, and expenses, as sanctioned by the court, rank in priority to certified liabilities under s.554(3) of the Companies Act 2014. The examiner is required to justify his claim with sufficient narrative and breakdown, but the level of detail must be proportionate. The examiner did not act irrationally or unreasonably in the conduct or duration of the examinership. There is no basis for apportioning costs to SCGL or for reducing the claim due to alleged prolongation. The application for approval and payment of the examiner's remuneration, outlay, and legal costs is granted, with the examiner's claims ranking ahead of certified liabilities.

Court Disposition

Application granted

Orders

  • Examiner's remuneration, outlay, and legal costs approved in the amounts claimed.
  • Official liquidator authorised to pay examiner's remuneration, outlay, and costs in priority to certified liabilities as and when funds become available.