Joseph T. Gannon v Anthony O'Hora Snr. (otherwise Tony O'Hora) and Angela O'Hora

• Jurisdiction: Ireland
• Judge: Ms. Justice Finlay Geoghegan
• Judgment Date: 15 May 2006
• Neutral Citation: [2006] IEHC 149
• Docket Number: [2005 No. 121 COS]
• Court: High Court
• Date: 15 May 2006

[2006] IEHC 149

THE HIGH COURT

NO. 121 COS/2005

GANNON v O'HORA

IN THE MATTER OF MOYPOOL LIMITED

(IN VOLUNTARY LIQUIDATION)

AND IN THE MATTER OF THE COMPANIES ACTS 1963– 2003

AND IN THE MATTER OF SECTION 150 OF THE COMPANIES ACT 1990

AND SECTION 56 OF THE COMPANY LAW ENFORCEMENT ACT 2001

BETWEEN/

JOSEPH T. GANNON

APPLICANT

AND

ANTHONY O'HORA SENIOR (OTHERWISE TONY O'HORA) AND ANGELA O'HORA

RESPONDENTS

COMPANIES ACT 1990 S150(1)

COMPANIES ACT 1990 S150(4B)

COMPANIES ACT 1990 S150

COMPANIES ACT 1963 S281

COMPANY LAW ENFORCEMENT ACT 2001 S41

GRACE (LIQUIDATOR) v KACHKAR (MITEK HOLDINGS LTD) UNREP HIGH COURT FINLAY GEOGHEGAN 21.2.2005

RSC O.99 r10(2)

COMPANY LAW

Directors

Restriction - Costs of investigation - Whether court had discretion to award costs for legal fees incurred in investigating matter - Whether solicitor's fees sought came within definition of costs of investigation - Whether costs of investigation confined to legal costs incurred in connection with litigation - In Re Mitek Holdings Ltd; Grace v Kachkar [2005] 1EHC 160, (Unrep, Finlay Geoghegan J, 5/5/2005) considered - Companies Act 1990 (No33), s 150(4B) - Companies Act 1961 (No 33), s 281 - Rules of the Superior Courts 1986, (SI 15/1986), O 99, r 10(2) - Liquidator's costs allowed against respondent (2005/121COS - Laffoy J - 15/5/2006) [2006] IEHC 149 Re Moypool Ltd; Gannon v O'Hora

Facts: section 150(4B) of the Companies Act 1990 provides, inter alia, that "the court, in hearing an application for a declaration under subsection (1) from...a liquidator...may order that the directors against whom the declaration is made shall bear the costs of the application and any costs incurred by the applicant in investigating the matter." The High Court made an order restricting the first respondent as a director pursuant to section 150 of the Act of 1990. The liquidator applied, pursuant to section 150(4B) of the Act of 1990, for the costs of investigating the matter for the purposes of the restriction litigation, primarily the costs of the solicitor he retained to investigate certain matters pertaining thereto. The respondent resisted the application, contending, inter alia, that section 150(4B) only related to the costs of the litigation and not the costs associated with the prior investigation conducted by the liquidator.

Held by Finlay Geoghegan J in ordering that the liquidator recover against the first respondent his costs of investigating the application under section 150 of the Act of 1990 that the explicit wording of section 150(4B) of the Act of 1990 made it clear that the costs incurred in investigating the matter could be ones separate to the costs of the application, in other words, the litigation between the parties. That the intention of the Oireachtas had to be construed as being that where the court made an order for the costs of investigating the matter, there be allowable all such costs as were necessary or proper for the investigation of the application under section 150. Fees charged by the solicitor for the liquidator for work done at this request in relation to the matters being investigated under the section 150 application came within this concept.

Reporter: P.C.

Judgment re costs of investigation

1 Judgment of Ms. Justice Finlay Geoghegan delivered the 15th day of May, 2006 .

2 On 8th December, 2005, this Court made declarations of restriction pursuant to s. 150(1) of the Companies Act, 1990 in respect of the respondents and ordered that the liquidator recover against the first named respondent his costs when taxed and ascertained. The liquidator's application pursuant to s. 150(4B) for an order that the first named respondent bear the costs incurred by the liquidator in investigating the matter was adjourned to permit the liquidator to furnish his estimate of such costs and to allow the issue be argued before me.

3 The liquidator seeks as costs incurred by him in investigating the application under s. 150, certain fees payable to his solicitors in respect of work done by them at his request in connection with the investigation of the s. 150 application. The estimate of the fees due and...