Kerry Underwood

CPR 44 APPLIED TO REDUCE COSTS AWARDED TO TRUSTEE IN BANKRUPTCY OF SURPLUS ESTATE

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Kerry Underwood offers consultancy services in relation to this and other matters and details are here.

In

Ardawa v Uppal and another [2019] EWHC 1663 (Ch) (28 June 2019)

the High Court held that the general Civil Procedure Rules about costs in CPR 44 applied to a costs order awarded to a trustee in bankruptcy made payable out of the bankrupt’s surplus estate.

It held that the court that heard and determined an appeal in insolvency proceedings also had jurisdiction to address the amount of costs it awarded, either by directing a detailed assessment or by a summary assessment where appropriate.

In most circumstances, including on the facts of this case, a summary assessment was appropriate as it aligned most closely with the CPR objectives.

Outside formal insolvency proceedings, and where there is an anticipated surplus of funds in the bankrupt’s estate, a bankrupt may challenge his trustee in bankruptcy’s excessive remuneration or expenses under rule 18.35 of the Insolvency (England and Wales) Rules 2016.

If the challenge is well-founded, the court must make an order reducing costs under rule 18.36(4) of the Insolvency (England and Wales) Rules 2016.

Rule 12.1 of the Insolvency (England and Wales) Rules 2016 confirms that the CPR apply to insolvency proceedings, unless disapplied or inconsistent with the Insolvency (England and Wales) Rules 2016.

Further, rule 12.41 of the Insolvency (England and Wales) Rules 2016 specifically applies CPR 44 to costs of insolvency proceedings.

 

Please see –

COSTS ROUND-UP

LEGAL OMBUDSMAN: AN OMBUDSMAN’S VIEW OF GOOD COSTS SERVICE SECOND EDITION

COURTS MUST NOT CONSIDER JACKSON REFORMS ETC. SAYS COURT OF APPEAL

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Written by kerryunderwood

August 7, 2019 at 8:30 am

Posted in Uncategorized

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