TScottish Lion Insurance Company Ltd, Re Sanction Of A Scheme Of Arrangement [2006] ScotCS CSOH_37 (08 March 2006)

TScottish Lion Insurance Company Ltd, Re Sanction Of A Scheme Of Arrangement [2006] ScotCS CSOH_37 (08 March 2006)

An additional fee under Rule of Court 42.14 cannot be awarded for work performed by English solicitors in Scottish proceedings; such fees are recoverable as outlays and assessed according to English law and practice, subject to the Auditor's discretion. The entitlement of Scottish solicitors to an additional fee is remitted to the Auditor for determination. The court refused to clarify or correct the interlocutor regarding the scope of expenses awarded, as it had no specific intention beyond a standard party and party award.

Citation
[2006] ScotCS CSOH_37
Parties
Petitioner: The Scottish Lion Insurance Company Limited; Noter: General Reinsurance Corporation; Creditors/objectors: National Grid Insurance Company (Isle of Man) Limited and others
Jurisdiction
Scotland
Judgment Date
08 March 2006
Procedural Posture
Petition for Sanction of a Scheme of Arrangement Under Section 425 of the Companies Act 1985 / Post Hearing on Expenses and Additional Fee Applications After Petition Dismissed
Outcome
Petition dismissed; motions for additional fee by Scottish solicitors remitted to Auditor; motions to clarify interlocutor refused in hoc statu.
Legal Topics
Scheme of Arrangement, Creditor Meetings, Expenses and Costs, Cross Jurisdictional Legal Fees, Taxation of Costs
Company Law Insolvency Law Civil Procedure Scheme of Arrangement Creditor Meetings Expenses and Costs Cross Jurisdictional Legal Fees Taxation of Costs

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Parties

The Scottish Lion Insurance Company Limited

Petitioner

General Reinsurance Corporation

Noter

National Grid Insurance Company (Isle of Man) Limited and others

Creditors/objectors

Procedural Posture

Petition for Sanction of a Scheme of Arrangement Under Section 425 of the Companies Act 1985 / Post Hearing on Expenses and Additional Fee Applications After Petition Dismissed

Legal Issues

  1. 1 Whether an additional fee under Rule of Court 42.14 can be awarded for work done by English solicitors in Scottish proceedings
  2. 2 How fees for non-Scottish solicitors are to be assessed and recovered in Scottish litigation
  3. 3 Whether the Scottish agents are entitled to an additional fee

Ratio Decidendi

An additional fee under Rule of Court 42.14 cannot be awarded for work performed by English solicitors in Scottish proceedings; such fees are recoverable as outlays and assessed according to English law and practice, subject to the Auditor's discretion. The entitlement of Scottish solicitors to an additional fee is remitted to the Auditor for determination. The court refused to clarify or correct the interlocutor regarding the scope of expenses awarded, as it had no specific intention beyond a standard party and party award.

Court Disposition

Petition dismissed; motions for additional fee by Scottish solicitors remitted to Auditor; motions to clarify interlocutor refused in hoc statu.

Orders

  • Petition dismissed.
  • Petitioner found liable to noter and National Grid creditors in reasonable expenses on a party and party basis, except as already dealt with.