The High Court reduced the remuneration claimed by the former interim examiner of Missford Limited, trading as Residence Members Club, and referred his legal costs to the Taxing Master for assessment.
Mr Justice Kelly’s judgment, delivered on 17 June 2010, concerned work carried out by Jim Stafford between 5 and 20 January 2010. Mr Stafford had been appointed interim examiner on 5 January. The company petition was dismissed on 20 January, and the court’s protection was withdrawn. He never acted as examiner.
Mr Stafford sought €61,857.20 in remuneration and €741.15 in expenses, both inclusive of VAT, as well as €50,600.65 in legal costs inclusive of VAT. No party opposed the claims. The judge said the court must scrutinise an examiner’s remuneration and costs, including whether the work fell within the examiner’s limited statutory role and whether the rates claimed were reasonable.
The judge reduced all personnel’s hourly rates by 16%, citing reductions in fees paid by the State for criminal legal work since 2007 as a comparator for professional work in the 2010 economic climate. Mr Stafford’s rate fell from €425 to €357 an hour.
The judgment also found that some work went beyond the interim examiner’s authority. Mr Stafford’s staff had monitored the company’s day-to-day operations and reviewed purchasing decisions amid concerns about financial controls. The judge said that if management powers were to be exercised, the appropriate course was to seek an order under section 9 of the Companies (Amendment) Act 1990. He did not suggest impropriety, but concluded that at least 15% of the time claimed related to work beyond the authority conferred by the court.
After reducing the claimed hours by 15% and applying the lower rates, the court allowed €37,726.08 in remuneration. Adding €741.15 in expenses brought the allowed total to €38,467.23.
The judge referred the €50,600.65 legal costs claim to the Taxing Master. In assessing it, the Taxing Master must take account of the judgment’s observations on professional rates and allow only legal fees directly related to work properly undertaken within the interim examiner’s limited role. The court did not determine the final amount of legal costs.