Jul 2013
BERMUDA
SUPREME COURT
JOINT PROVISIONAL LIQUIDATORS – RECOVERY OF COSTS – REASONABLE FEES – RULE 23(3) OF THE COMPANIES (WINDING UP) RULES, 1982
In this matter the JPLs sought approval from the Court for their outstanding costs which amounted to just over US$445,000. The Company opposed that application and contended that the total sum sought was unreasonable. The Court noted that this was the first time that the Bermuda Court has had to resolve contested liquidation fees in such a hearing.
The Company’s counsel referred the Court to some authorities which he contended should guide the Court, in particular Rule 23(3) of the Companies (Winding-up) Rules, 1982 which in effect provides that a liquidator is entitled to all costs that are “reasonably incurred by him as provisional liquidator”. In addition, Counsel for the Company relied on the authorities of Mirror Group Newspapers plc -v- Maxwell and others (No 2) [1998] 1 BCLC 638; and the more recent case of Brook -v- Read [2012] 1 BCLC 379; [2011] EWCA Civ 331. Both of these cases supported the proposition that the Court, in looking at the fees of office holders, should not simply look at the question of the time billed, but should have regard to the broader question of the value provided by the services in question in broad commercial terms.