Re Castle Brand Ltd

• Jurisdiction: Ireland
• Judge: Miss Justice Carroll
• Judgment Date: 01 January 1990
• Neutral Citation: 1990 WJSC-HC 235
• Docket Number: [1984 No. 6249 P],No. 6249p/1984
• Court: High Court
• Date: 01 January 1990

1990 WJSC-HC 235

THE HIGH COURT

No. 6249p/1984

CASTLE BRAND LTD

IN THE MATTER OF CASTLE BRAND LIMITED (IN LIQUIDATION)

AND IN THE MATTER OF THE COMPANIES ACTS 1963 TO 1986

Citations:

COMPANIES ACT 1963 S281

RSC O.74 r128(2)

SOLICITORS (IRL) ACT 1849 S2

NATIONAL BANK OF WALES, IN RE 1902 2 CH 412

RSC O.99 r29(13)

RSC APPENDIX W S5

Synopsis:

WINDING UP

Costs

Bill of costs - Preparation - Bill prepared by legal costs accountant - Costs accountant appointed by liquidator's solicitor - Charges and expenses of accountant relating to preparation of bill - Such charges and expenses not properly incurred - (1984/6249 P - Carroll J. - 2/10/89)

|In re Castle Brand Ltd.|

PRACTICE

Costs

Company - Winding up - Official liquidator - Solicitor - Bill of costs - Preparation - Bill prepared by legal costs accountant appointed by liquidator's solicitor - Charges and expenses of costs accountant relating to preparation of bill - Such charges and expenses not properly incurred in the winding up - Rules of the Superior Courts, 1986, order 74, r. 128(2); order 99, r. 29(13) & Appendix W, Part 1(5) - Solicitors (Ireland) Act, 1849, s. 2 - Companies Act, 1963, s. 281 - (1984/6249 P - Carroll J. - 2/10/89) - [1990] 1 I.R. 301 - [1990] ILRM 97

|In re Castle Brand Ltd.|

1 Judgment of Miss Justice Carroll delivered the 2nd day of October 1989.

2 The Official Liquidator of Castle Brand Limited (In Liquidation) has applied to the Court for liberty to pay the costs of a Legal Costs Accountant employed by his Solicitors in connection with the Taxation of his Solicitors costs, together with VAT, amounting in total to £5,119–75. When the matter first came before the Court, the issue was referred back to the Taxing Master. The Revenue Commissioners, as the largest creditor, were appointed to oppose the application on behalf of the creditors and contributories. The item of the charges and outlay of the Legal Costs Accountants were first added to the Bill for taxing and then, as the Taxing Master was not satisfied it was an item for which the client ought or could be liable, taxed off the item. He set out his reasons in a Report to the Court and it is that decision which is appealed. He says at page 5 thereof:-

"The primary duty of a Solicitor in relation to charges and expenses is to have the Bill of Costs prepared properly and in accordance with law, practice and rules laid down by the Rules of Court and this whether he does the work himself or a member of his staff or engages the services of a Legal Costs Accountant. Where a Solicitor engages a Legal Costs Accountant he does so in ease of himself, that is to say to relieve himself of the burden and responsibility of drawing, preparing and submitting the Bill, whether for Taxation or not and further to have the benefit of the expert and specialised knowledge of a Legal Costs Accountant. If however he can then visit these charges and expenses of the Legal Costs Accountant upon the Paying Party (who has not or never had any privity with the Legal Costs Accountant) this would in my respectful opinion, be completely unreasonable and be a complete departure from a very long established practice and tradition going back to the earliest concept of legal costs as we know them today."

3 Section 281 of the Companies Act 1963provides:-

"All costs, charges and expenses properly incurred in the winding up, including the remuneration of the liquidator, shall be payable out of the assets of the company in priority to all other claims."

4 Order 74 Rule 128 (2) of the Superior...