Murray WS v Arakin Ltd [2006] ScotCS CSOH_64 (28 April 2006)

Murray WS v Arakin Ltd [2006] ScotCS CSOH_64 (28 April 2006)

Objections to the Auditor's disallowance of items in the accounts of expenses that depend on disputed questions of fact cannot be determined at a hearing on a note of objections; such matters require a hearing of evidence. The Auditor was entitled to proceed on the information before him and to abate or disallow items where primary responsibility lay elsewhere or where vouching was insufficient. Procedural fairness issues regarding access to files and documents may require further inquiry but do not, at this stage, invalidate the taxation process.

Citation
[2006] ScotCS CSOH_64
Parties
Pursuer: Tods Murray W.S.; Defender: Arakin Limited
Jurisdiction
Scotland
Judgment Date
28 April 2006
Procedural Posture
Civil (payment of Professional Fees) / Hearing on Notes of Objections to Auditor's Reports on Taxation of Accounts of Expenses
Outcome
Objections to the Auditor's decisions on items involving disputed facts are not sustained at this stage; a hearing of evidence is allowed on the telephone call charges; other objections are dismissed or deferred for later determination.
Legal Topics
Taxation of Costs, Solicitor Client Fees, Doctrine of Settled Accounts, Access to Documents, VAT on Legal Fees
Civil Procedure Legal Costs Professional Negligence Taxation of Costs Solicitor Client Fees Doctrine of Settled Accounts Access to Documents VAT on Legal Fees

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 5 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Tods Murray W.S.

Pursuer

Arakin Limited

Defender

Procedural Posture

Civil (payment of Professional Fees) / Hearing on Notes of Objections to Auditor's Reports on Taxation of Accounts of Expenses

Legal Issues

  1. 1 Whether the Auditor erred in disallowing certain items in the pursuers' accounts of expenses
  2. 2 Whether factual disputes regarding instructions and work done can be resolved at a hearing on a note of objections
  3. 3 Whether the process followed by the Auditor, including access to files, was procedurally fair

Ratio Decidendi

Objections to the Auditor's disallowance of items in the accounts of expenses that depend on disputed questions of fact cannot be determined at a hearing on a note of objections; such matters require a hearing of evidence. The Auditor was entitled to proceed on the information before him and to abate or disallow items where primary responsibility lay elsewhere or where vouching was insufficient. Procedural fairness issues regarding access to files and documents may require further inquiry but do not, at this stage, invalidate the taxation process.

Court Disposition

Objections to the Auditor's decisions on items involving disputed facts are not sustained at this stage; a hearing of evidence is allowed on the telephone call charges; other objections are dismissed or deferred for later determination.

Orders

  • A hearing of evidence is to be fixed regarding the factual issues underlying the objection to telephone call charges.
  • Other objections to the Auditor's Reports are dismissed or deferred pending further proceedings.