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VIA WESTLAW

Anglo Irish Bank Corp Ltd v DTZ Debenham Tie Leung Ltd

Queens Bench Division, Commercial Court, 7 March 2013

Unreported

Subject: Insolvency Other related subjects:

Civil procedure; Insolvency

Keywords: Liquidation; Security for costs

Summary: An application for security for costs against a bank which was the subject of parliamentary-imposed liquidation under the Irish Bank Resolution Corporation Act 2013 was refused where the applicant had been unable to demonstrate that the legislation would impact upon the normal principle that the costs of the successful party would be recoverable as a priority cost against a company in liquidation.Abstract: The applicant D applied for security for costs of defending a professional negligence claim brought against it by the respondent bank B. B had experienced financial difficulties and was supported by the Irish government. Under the Irish Bank Resolution Corporation Act 2013 B was put into a unique form of parliamentary-imposed liquidation. Section 10 of the 2013 Act both disapplied and re-enacted certain provisions of Irelands Companies Act 1983 which related to liquidations. D submitted that, because of the unique form of liquidation, there was some doubt as to whether the ordinary principle, that the costs of the successful party would be recoverable as a priority cost against a company in liquidation, would apply.

Application refused. The threshold requirement was that there needed to be a reason to believe that B would be unable to meet a costs order made against it. D had failed to establish doubt as to the ability of the liquidator to use Bs assets to pay out in priority the costs to which D would be entitled if ultimately successful. The 2013 Act expressly provided that the special liquidator might apply to the court to exercise all or any of the powers which the court might exercise if B were being wound up by the court.Judge: Burton, J.Counsel: For the applicant: Clive Freedman QC. For the respondent: Rhodin Davies QC.

via Anglo Irish Bank Corp Ltd v DTZ Debenham Tie Leung Ltd | Westlaw UK.