The Scottish Lion Insurance Company Ltd v. Goodrich Corporation & Ors [2010] ScotCS CSIH_34 (28 April 2010)

The Scottish Lion Insurance Company Ltd v. Goodrich Corporation & Ors [2010] ScotCS CSIH_34 (28 April 2010)

Ordinary principles of expenses apply in opposed applications under Part 26 of the Companies Act 2006; where success is mixed in the Outer House, no expenses are due to or by either party; where respondents were unsuccessful in the Inner House, they are liable for the petitioner's expenses for that stage.

Citation
[2010] ScotCS CSIH_34
Parties
Petitioner and Reclaimer: The Scottish Lion Insurance Company Limited; Respondents: Goodrich Corporation and Others
Jurisdiction
Scotland
Judgment Date
28 April 2010
Procedural Posture
Petition Under Part 26 of the Companies Act 2006 (scheme of Arrangement) / Post Reclaiming Motion, Determination of Expenses
Outcome
Lord Ordinary's interlocutor of 16 October 2009 (except para 1c) recalled; no expenses due to or by any party for Outer House hearing of 7-9 July 2009; respondents jointly and severally liable to petitioner for expenses of reclaiming motion; petitioner's motion for additional fee refused in hoc statu; respondents'...
Legal Topics
Scheme of Arrangement, Costs and Expenses, Creditor Opposition, Court Discretion in Expenses
Company Law Civil Procedure Scheme of Arrangement Costs and Expenses Creditor Opposition Court Discretion in Expenses

Case Brief

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Parties

The Scottish Lion Insurance Company Limited

Petitioner and Reclaimer

Goodrich Corporation and Others

Respondents

Procedural Posture

Petition Under Part 26 of the Companies Act 2006 (scheme of Arrangement) / Post Reclaiming Motion, Determination of Expenses

Legal Issues

  1. 1 Whether respondents are entitled to challenge the chairman's decision on statutory majorities at creditors' meetings
  2. 2 Whether it can ever be fair to sanction a 'solvent' scheme of arrangement in the face of continuing creditor opposition
  3. 3 Proper practice for awarding expenses in opposed applications under Part 26 of the Companies Act 2006

Ratio Decidendi

Ordinary principles of expenses apply in opposed applications under Part 26 of the Companies Act 2006; where success is mixed in the Outer House, no expenses are due to or by either party; where respondents were unsuccessful in the Inner House, they are liable for the petitioner's expenses for that stage.

Court Disposition

Lord Ordinary's interlocutor of 16 October 2009 (except para 1c) recalled; no expenses due to or by any party for Outer House hearing of 7-9 July 2009; respondents jointly and severally liable to petitioner for expenses of reclaiming motion; petitioner's motion for additional fee refused in hoc statu; respondents'...

Orders

  • No expenses due to or by any party for Outer House hearing on 7-9 July 2009.
  • Respondents jointly and severally liable to petitioner for expenses of reclaiming motion.