Rely on the most comprehensive, up-to-date legal content designed and curated by lawyers for lawyers
Work faster and smarter to improve your drafting productivity without increasing risk
Accelerate the creation and use of high quality and trusted legal documents and forms
Streamline how you manage your legal business with proven tools and processes
Manage risk and compliance in your organisation to reduce your risk profile
Stay up to date and informed with insights from our trusted experts, news and information sources
Access the best content in the industry, effortlessly — confident that your news is trustworthy and up to date.
Find up-to-date guidance on points of law and then easily pull up sources to support your advice with Lexis PSL
With over 30 practice areas, we have all bases covered. Find out how we can help
Our trusted tax intelligence solutions, highly-regarded exam training and education materials help guide and tutor Tax professionals
Regulatory, business information and analytics solutions that help professionals make better decisions
A leading provider of software platforms for professional services firms
In-depth analysis, commentary and practical information to help you protect your business
LexisNexis Blogs shed light on topics affecting the legal profession and the issues you're facing
Legal professionals trust us to help navigate change. Find out how we help ensure they exceed expectations
Lex Chat is a LexisNexis current affairs podcast sharing insights on topics for the legal profession
Discuss the latest legal developments, ask questions, and share best practice with other LexisPSL subscribers
Where there is a change of liquidator in the course of an office-holder’s claim, does the indemnity principle prevent the new liquidators from recovering costs of the claim relating to the period before their appointment? Cristín Toman of Enterprise Chambers, discusses the appeal of Tackie & Anor v Morrison.
Tackie & Anor v Morrison  EWHC 3980 (Ch)
This was an appeal from a decision made by the costs judge on a detailed assessment of costs in insolvency proceedings. Mr Morrison was the defendant to proceedings (the preference claim) brought under sections 238–240 of the Insolvency Act 1986 (IA 1986) by the liquidator of ATM Sales Limited.
After commencement of the preference claim, but before trial, the liquidator retired due to ill health and was no longer able to continue in office. New liquidators (the liquidators) were appointed in his place, and were substituted as claimants in the preference claim.
At trial the preference claim succeeded and a costs order was made against Mr Morrison in favour of the liquidators.
At detailed assessment Mr Morrison argued that the liquidators were not entitled to their costs in respect of the period before the change of liquidator. The costs judge rejected this argument, and assessed costs on the basis that the liquidators were entitled to costs pre-dating the change of liquidator and their substitution as claimants.
Mr Morrison appealed to the Chancery Division.
The judge, His Honour Judge Hodge QC, had to decide where there was a change of liquidator in the course of an office-holder’s claim, whether the indemnity principle prevented the new liquidators recovering costs of the claim relating to the period before their appointment.
In his appellant’s notice, Mr Morrison had presented the appeal on the (wrong) basis that the change of office-holder had occurred after the costs order was made, and that the liquidators were attempting to enforce a costs order made before they were party to the proceedings. If these had been the true facts, there would have been a further legal issue as to whether a liquidator can enforce an order for costs made in favour of his or her predecess
Access this article and thousands of others like it free by subscribing to our blog.
Read full article
Already a subscriber? Login
Stephen qualified as a solicitor in 2005 and joined the Restructuring and Insolvency team at Lexis®PSL in September 2014 from Shoosmiths LLP, where he was a senior associate in the restructuring and insolvency team.
Primarily focused on contentious and advisory corporate and personal insolvency work, Stephen’s experience includes acting for office-holders on a wide range of issues, including appointments, investigations and the recovery and realisation of assets (including antecedent transaction claims), and for creditors in respect of the impact on them of the insolvency of debtors and counterparties.
0330 161 1234