Liquidator's fees reduced where there was paucity of evidence as to the work done

Ciaran Joyce BL, 6 February 2019 (© Stare Decisis Hibernia)

February 11, 2019

In Re Lucca Food Trading Company Ltd; Fitzpatrick v Revenue Commissioners [2019] IEHC 11


Judgment of Allen J delivered 18 January 2019

High Court makes order fixing a liquidator's remuneration and expense at 37,883.69 euro (a substantial reduction of the original claim) and directing a payment of 42,116.31 euro be made to Revenue, finding that claims for 'legal and professional fees' and 'payments to consultants' must be reduced in light of the analysis of the work completed and the paucity of the evidence as to what work was done. 

Liquidator fees - whether the claim for remuneration was far in excess of the normal level of remuneration in a liquidation of such a size and complexity - claims for costs for legal fees and consultants - whether the liquidator is entitled to be reimbursed from the company's assets for the money he has paid out - s 280 of the Companies Act 1963 - s 631 of the Companies Act 2014 - liquidator's fees fixed.

Quotation from judgment (courtesy of the Courts Service of Ireland):

'The paucity of the evidence as to what work was done, the disproportion between the tasks said to have been done and the hours said to have been spent doing them, the inconsistencies between the narrative account of work allegedly done and the particulars (in the "analysis of work completed") of the work said to have been done makes it very difficult to assess the fair value of the work properly done. On one view, at least, any attempt by the court to go behind a claim which was not established would sit very uneasily with the settled law that the onus is on the liquidator to justify his claim.'


Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.


Key cases cited: 

Mirror Group Newspapers plc v Maxwell and Others [1998] 1 BCLC 638

Re: Cherryfox Ltd [2018] IEHC 260

Re: Sharmane Ltd [2009] 4 IR 285

Re: Mouldpro International Limited [2018] IECA 88

Re: Missford Ltd [2010] 3 IR 756

Re: Marino Ltd [2010] IEHC 394

ESG Reinsurance Ireland Ltd [2010] IEHC 365