Re Kimberley Scott Services Ltd (In Liquidation)  EWHC 1563 (Ch); Beattie v (1) Smailes (2) Ryman (No. 2)  EWHC 3865 (Ch);  BPIR 341
(Chancery Division, Norris J, 24 May 2011 26 July 2011)
Upon dismissal of a minority creditor's application to remove liquidators, it was appropriate to make an order for indemnity costs. Norris J held that it was a case out of the ordinary and a departure from the norm in that: (i) his claim as a creditor was very small; (ii) the arguments were based on hypothetical conflicts of interest that were plainly capable of resolution without the removal of the joint liquidators; and (iii) it was an extravagant claim which ought not to have been brought and it was difficult to see what real and substantial advantage it could ever have conferred on B, even if wholly successful. There was no reason why the creditors should bear any part of the costs incurred by the joint liquidators in resisting the claim. A payment on account of those costs was ordered, by reference to the costs incurred after the entry into a back-dated conditional fee agreement.
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