Walker (As Trustee in Bankruptcy of Tully) v Bank of Scotland PLC (t/a Birmingham Midshires and AXA Insurance UK Plc & Ors No.2 [2017] NICh 18 (14 June 2017)

Walker (As Trustee in Bankruptcy of Tully) v Bank of Scotland PLC (t/a Birmingham Midshires and AXA Insurance UK Plc & Ors No.2 [2017] NICh 18 (14 June 2017)

A trustee in bankruptcy is not personally liable for costs when seeking directions under Article 276, but becomes vulnerable to costs following the event if he appeals an adverse ruling. However, in this case, the court exercised discretion and declined to make a personal costs order against the trustee on appeal,...

Source-derived case information.

Citation
[2017] NICh 18
Parties
Applicant: Brian F Walker; First Respondent: Bank of Scotland PLC trading as Birmingham Midshires; Second Respondent: AXA Insurance UK PLC; Third Respondent: Ciaran Tully (Jnr); Third Respondent: Rachel Tully
Jurisdiction
Northern Ireland
Judgment Date
14 June 2017
Procedural Posture
Bankruptcy Application for Directions / Appeal From Master to High Court Judge
Outcome
Appeal dismissed; no personal costs order against trustee.
Legal Topics
Trustee Liability for Costs, Directions Under Article 276, Costs in Bankruptcy Proceedings
Insolvency Bankruptcy Civil Procedure Trustee Liability for Costs Directions Under Article 276 Costs in Bankruptcy Proceedings

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Parties

Brian F Walker

Applicant

Bank of Scotland PLC trading as Birmingham Midshires

First Respondent

AXA Insurance UK PLC

Second Respondent

Ciaran Tully (Jnr)

Third Respondent

Rachel Tully

Third Respondent

Procedural Posture

Bankruptcy Application for Directions / Appeal From Master to High Court Judge

Legal Issues

  1. 1 Is a trustee in bankruptcy personally liable for costs when seeking directions under Article 276 and appealing an adverse ruling?
  2. 2 Should costs follow the event in an Article 276 appeal?

Ratio Decidendi

A trustee in bankruptcy is not personally liable for costs when seeking directions under Article 276, but becomes vulnerable to costs following the event if he appeals an adverse ruling. However, in this case, the court exercised discretion and declined to make a personal costs order against the trustee on appeal, maintaining the standard practice of costs against the estate only.

Court Disposition

Appeal dismissed; no personal costs order against trustee.

Orders

  • Costs order against the estate in favour of both respondents; no personal costs order against Mr Walker.