JOLLANDS v WILSON [2016] NZHC 308

JOLLANDS v WILSON [2016] NZHC 308

The court reduced the liquidators' claimed fees because the charge-out rates exceeded the court-approved rates, the liquidator continued substantive liquidation work after a credible s 250 termination application was underway, and legal costs incurred to protect the creditor's interests were improperly charged to...

Source-derived case information.

Citation
[2016] NZHC 308
Parties
Applicant (liquidator): Peter Reginald Jollands; Applicant (liquidator): Catherine Jane Jollands; Respondent (director): Gregory John Wilson
Court
High Court
Jurisdiction
New Zealand
Judgment Date
29 February 2016
Procedural Posture
Companies Act Application Under S 284 to Fix Liquidators' Remuneration / Final Judgment Fixing Remuneration and Costs
Outcome
Liquidators' remuneration fixed and reduced; certain legal costs disallowed; liquidators ordered to refund excess amounts and to show refund at a subsequent court call
Legal Topics
Liquidation, Liquidators' Remuneration, S 250 Termination of Liquidation, Statutory Demand and Service, Conflict of Interest in Insolvency
Companies Law Insolvency Civil Procedure Liquidation Liquidators' Remuneration S 250 Termination of Liquidation Statutory Demand and Service Conflict of Interest in Insolvency

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Parties

Peter Reginald Jollands

Applicant (liquidator)

Catherine Jane Jollands

Applicant (liquidator)

Gregory John Wilson

Respondent (director)

Procedural Posture

Companies Act Application Under S 284 to Fix Liquidators' Remuneration / Final Judgment Fixing Remuneration and Costs

Legal Issues

  1. 1 Whether the liquidators' claimed fees should be fixed and reduced
  2. 2 Whether legal costs incurred protecting a creditor's interests are recoverable from the company
  3. 3 Appropriate hourly rates and allowable hours for liquidator and staff

Ratio Decidendi

The court reduced the liquidators' claimed fees because the charge-out rates exceeded the court-approved rates, the liquidator continued substantive liquidation work after a credible s 250 termination application was underway, and legal costs incurred to protect the creditor's interests were improperly charged to the company; remuneration was fixed at $10,307.50 plus GST with other disbursements disallowed except $969.34, and the liquidators were ordered to refund the excess.

Court Disposition

Liquidators' remuneration fixed and reduced; certain legal costs disallowed; liquidators ordered to refund excess amounts and to show refund at a subsequent court call

Orders

  • Liquidators' remuneration fixed at NZD 10,307.50 excluding GST
  • Disbursements allowed NZD 969.34