PETITION BY BLAIR CARNEGIE NIMMO AND ALISTAIR MCALINDEN [2023] ScotCS CSOH_27 (25 April 2023)

PETITION BY BLAIR CARNEGIE NIMMO AND ALISTAIR MCALINDEN [2023] ScotCS CSOH_27 (25 April 2023)

The court found that the reporter and auditor had not sufficiently scrutinised whether the legal fees and other outlays were reasonably incurred, nor provided adequate detail on the value and reasonableness of certain pre- and post-appointment work and work not made available to successors. The matter must be remitted for further inquiry and taxation of legal fees before any order fixing remuneration and outlays can be made.

Citation
[2023] ScotCS CSOH_27
Parties
Petitioners: Blair Carnegie Nimmo and Alistair McAlinden, as the former joint administrators of Future Renewables Eco PLC (in administration); Respondents: Respondents (current joint administrators)
Jurisdiction
Scotland
Judgment Date
25 April 2023
Procedural Posture
Petition to Fix Remuneration and Outlays of Former Administrators / Interlocutory Order Following Objections and Reporter's Report
Outcome
Remitted for further inquiry; no final order on remuneration or outlays at this stage.
Legal Topics
Administrator Remuneration, Court Approval of Outlays, Objections to Fees, Role of Reporter in Insolvency, Successor Administrator Rights
Insolvency Company Law Civil Procedure Administrator Remuneration Court Approval of Outlays Objections to Fees Role of Reporter in Insolvency Successor Administrator Rights

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Parties

Blair Carnegie Nimmo and Alistair McAlinden, as the former joint administrators of Future Renewables Eco PLC (in administration)

Petitioners

Respondents (current joint administrators)

Respondents

Procedural Posture

Petition to Fix Remuneration and Outlays of Former Administrators / Interlocutory Order Following Objections and Reporter's Report

Legal Issues

  1. 1 Whether the remuneration and outlays claimed by former administrators are reasonable and recoverable
  2. 2 Whether legal fees and other outlays were reasonably incurred
  3. 3 Whether work done pre- and post-appointment was properly chargeable

Ratio Decidendi

The court found that the reporter and auditor had not sufficiently scrutinised whether the legal fees and other outlays were reasonably incurred, nor provided adequate detail on the value and reasonableness of certain pre- and post-appointment work and work not made available to successors. The matter must be remitted for further inquiry and taxation of legal fees before any order fixing remuneration and outlays can be made.

Court Disposition

Remitted for further inquiry; no final order on remuneration or outlays at this stage.

Orders

  • Remit to Auditor to tax Addleshaw Goddard LLP's legal fees and report.
  • Remit to reporter to reconsider whether all outlays were reasonably incurred and to provide further detail on pre- and post-appointment work and work not made available to successors.