Invenia Technical Computing Corporation & Anor v Matthew Hudson
[2024] EWHC 1302 (Ch)
TCPC Management Limited v Windrush Alliance UK Community Interest Company
12 April 2024
[2024] EWHC 809 (Ch)
High Court
A company lost a court case trying to get a winding-up petition dismissed. The winning company wants lots of money for legal fees. Because of disagreements about the amount owed, the judge said a detailed assessment of the fees was needed. The losing company must pay £70,000 immediately, with the rest to be sorted out later.
Key Facts
- •TCPC Management Limited (Petitioner) brought a winding-up petition against Windrush Alliance UK Community Interest Company (Company).
- •The Company applied to strike out the petition; this application was refused ([2024] EWHC 683 (Ch)).
- •This case concerns the costs of the strike-out application.
- •The Petitioner sought indemnity costs; the Company conceded liability for costs on the standard basis.
- •The Petitioner's costs claim exceeded £150,000.
- •Significant disputes existed regarding the reasonableness and proportionality of the Petitioner's claimed costs.
Legal Principles
Indemnity costs are awarded only in exceptional cases where the conduct of the paying party is outside the ordinary and reasonable conduct of litigation.
CPR Rule 44
Summary assessment of costs is the norm for cases lasting less than a day, unless substantial grounds for dispute exist.
Practice Direction 44, paragraph 9.2
When ordering detailed assessment of costs, a reasonable sum on account should be ordered unless there is good reason not to.
CPR Rule 44.2(8)
Costs payable as an expense of liquidation can be addressed in subsequent liquidation proceedings.
Insolvency Rules 2016, Rule 7.108(4)(h)
Outcomes
The Company to pay the Petitioner's costs on the standard basis.
The Company's conduct, while potentially criticizable in hindsight, was not outside the ordinary and reasonable conduct of litigation.
Detailed assessment of costs ordered.
Significant disputes existed regarding the Petitioner's costs claim, making a summary assessment impractical and unfair.
Payment on account of £70,000 (inclusive of VAT) ordered.
This amount represents a reasonable payment considering the significant costs claimed and the disputes raised by the Company.
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