The question that always arises in Insolvencies is :
What scale to be applied. Is it Party and Party or Attorney and Client?
It has been held that the Party and Party basis is wholly inappropriate as a basis upon which to tax the costs of an Insolvency and that the proper basis is an Attorney and Client basis on the intermediate scale.
Notwithstanding that the petitioner’s ultimate aim, in all such proceedings, may be to do the best he can for himself, the proceedings are not really in the nature of a contest between the petitioner and someone else. This is especially so when the proceedings are unopposed. The petitioner is not seeking to obtain an advantage enjoyable only by himself. In all such proceedings, the Court has regard to interests far wider than those of the petitioner alone. Where the petitioner is successful, it seems to be quite inequitable that the petitioner, who by Statute itself, is compelled to foot the bill until the Court has decided the case, should be treated on the same basis as a person who has been successful in normal litigation.
For assistance and advice regarding the legal costs issues relating to Insolvencies and the taxation thereof, please feel free to contact our offices.
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