Custom House Capital Ltd (in liquidation) [2014] IEHC 705 (21 November 2018)

Custom House Capital Ltd (in liquidation) [2014] IEHC 705 (21 November 2018)

On the facts, reconciliation work is properly part of the liquidator's duties in winding up CHC, not administrator work, and the liquidator is entitled to remuneration for such work from company assets, subject to reduction for excessive client and Central Bank communications. Legal costs are allowed in full. No evidence of double remuneration for administrator work.

Citation
[2014] IEHC 705
Parties
Applicant / Official Liquidator: Kieran Wallace; Respondent / Company in Liquidation: Custom House Capital Limited (in liquidation); Notice Party / Legitimus Contradictor: Committee of Clients; Notice Party: Investor Compensation Company Limited (ICCL); Notice Party: Central Bank; Notice Party: Pensions Authority
Jurisdiction
Ireland
Judgment Date
21 November 2018
Procedural Posture
Court Supervised Liquidation / Interlocutory Application for Measurement of Remuneration and Legal Costs
Outcome
Liquidator's remuneration and legal costs measured and allowed, subject to reduction; payment permitted from company assets.
Legal Topics
Liquidator Remuneration, Legal Costs, Client Asset Distribution, Administrator Duties, Investor Compensation Act, European Communities (markets in Financial Instruments) Regulations
Insolvency Company Law Financial Regulation Liquidator Remuneration Legal Costs Client Asset Distribution Administrator Duties Investor Compensation Act +1 more

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Parties

Kieran Wallace

Applicant / Official Liquidator

Custom House Capital Limited (in liquidation)

Respondent / Company in Liquidation

Committee of Clients

Notice Party / Legitimus Contradictor

Investor Compensation Company Limited (ICCL)

Notice Party

Central Bank

Notice Party

Pensions Authority

Notice Party

Procedural Posture

Court Supervised Liquidation / Interlocutory Application for Measurement of Remuneration and Legal Costs

Legal Issues

  1. 1 Whether reconciliation work is properly liquidator or administrator work
  2. 2 Measurement of liquidator's remuneration and legal costs
  3. 3 Entitlement to payment from company assets

Ratio Decidendi

On the facts, reconciliation work is properly part of the liquidator's duties in winding up CHC, not administrator work, and the liquidator is entitled to remuneration for such work from company assets, subject to reduction for excessive client and Central Bank communications. Legal costs are allowed in full. No evidence of double remuneration for administrator work.

Court Disposition

Liquidator's remuneration and legal costs measured and allowed, subject to reduction; payment permitted from company assets.

Orders

  • Remuneration, fees and expenses of Official Liquidator for period 21/10/2011 to 31/10/2013 measured at €1,110,809.11 plus outlay of €10,008.19 plus VAT.
  • Legal costs of Official Liquidator measured at €527,876.76 (inclusive of outlays), payment permitted from company assets.