USIT Ltd & Anor -v- Companies Acts [2005] IEHC 481 (16 November 2005)

USIT Ltd & Anor -v- Companies Acts [2005] IEHC 481 (16 November 2005)

The court retains discretion under O.99 RSC to award costs to successful respondent directors where no declaration of restriction is made, and s.150(4B) Companies Act 1990 does not remove this discretion. Costs should follow the event, and there are no special circumstances to depart from this rule in the present case.

Citation
[2005] IEHC 481
Parties
Company: USIT Limited; Company: USIT World PLC; Respondent Director: Gordon Colleary; Respondent Director: Mairin Colleary; Respondent Director: Angel Olivares; Respondent Director: Gerard Connolly; Respondent Director: Lynn Millington-Wallace; Respondent Director: Xavier Moreels; Respondent STA Director: Richard Porter; Respondent STA Director: Mark Adams; Respondent STA Director: Dan McGing; Applicant: Liquidator
Jurisdiction
Ireland
Judgment Date
16 November 2005
Procedural Posture
Company Law Application for Restriction of Directors / Post Judgment Costs Determination
Outcome
Costs awarded to successful respondent directors against the liquidator.
Legal Topics
Restriction of Directors, Costs in Liquidation, Court Discretion on Costs
Company Law Insolvency Restriction of Directors Costs in Liquidation Court Discretion on Costs

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Parties

USIT Limited

Company

USIT World PLC

Company

Gordon Colleary

Respondent Director

Mairin Colleary

Respondent Director

Angel Olivares

Respondent Director

Gerard Connolly

Respondent Director

Lynn Millington-Wallace

Respondent Director

Xavier Moreels

Respondent Director

Richard Porter

Respondent STA Director

Mark Adams

Respondent STA Director

Dan McGing

Respondent STA Director

Liquidator

Applicant

Procedural Posture

Company Law Application for Restriction of Directors / Post Judgment Costs Determination

Legal Issues

  1. 1 Whether successful respondent directors are entitled to costs against the liquidator after refusal of restriction orders
  2. 2 Whether s.150(4B) Companies Act 1990 removes court's discretion to award costs under O.99 RSC

Ratio Decidendi

The court retains discretion under O.99 RSC to award costs to successful respondent directors where no declaration of restriction is made, and s.150(4B) Companies Act 1990 does not remove this discretion. Costs should follow the event, and there are no special circumstances to depart from this rule in the present case.

Court Disposition

Costs awarded to successful respondent directors against the liquidator.

Orders

  • Mairin Colleary awarded costs limited to €10,000 plus VAT against the liquidator.
  • Gerard Connolly awarded costs against the liquidator.