Varvari v The Personal Insolvency Acts 2012 to 2015 [2020] IEHC 23 (27 January 2020)

Varvari v The Personal Insolvency Acts 2012 to 2015 [2020] IEHC 23 (27 January 2020)

The practitioner failed to undertake the basic and necessary steps to verify the debtor's income as required by statute and protocol, and pursued an appeal when it was clear the arrangement was unsustainable. This conduct amounted to exceptional circumstances justifying a costs order against the practitioner.

Citation
[2020] IEHC 23
Parties
Debtor: Ciprian Varvari; Personal Insolvency Practitioner: Daniel Rule (McCambridge Duffy); Objecting Creditor: Tanager DAC
Jurisdiction
Ireland
Judgment Date
27 January 2020
Procedural Posture
Circuit Appeal (personal Insolvency) / Costs Application Following Unsuccessful Appeal
Outcome
Costs awarded against the personal insolvency practitioner (Daniel Rule) in favour of the objecting creditor (Tanager DAC).
Legal Topics
Personal Insolvency Arrangements, Costs Orders Against Practitioners, Verification of Debtor Income, Duty of Disclosure to Court
Insolvency Law Civil Procedure Personal Insolvency Arrangements Costs Orders Against Practitioners Verification of Debtor Income Duty of Disclosure to Court

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Parties

Ciprian Varvari

Debtor

Daniel Rule (McCambridge Duffy)

Personal Insolvency Practitioner

Tanager DAC

Objecting Creditor

Procedural Posture

Circuit Appeal (personal Insolvency) / Costs Application Following Unsuccessful Appeal

Legal Issues

  1. 1 Whether costs should be awarded against a personal insolvency practitioner for failure to properly verify debtor's income and pursuing an unsustainable appeal
  2. 2 What constitutes 'exceptional circumstances' justifying a costs order against a practitioner under the Personal Insolvency Acts

Ratio Decidendi

The practitioner failed to undertake the basic and necessary steps to verify the debtor's income as required by statute and protocol, and pursued an appeal when it was clear the arrangement was unsustainable. This conduct amounted to exceptional circumstances justifying a costs order against the practitioner.

Court Disposition

Costs awarded against the personal insolvency practitioner (Daniel Rule) in favour of the objecting creditor (Tanager DAC).

Orders

  • Practitioner to pay the costs of the appeal to Tanager DAC.