A case against an Insolvency Practitioner
Wright Hassall is pursuing an insolvency practitioner (IP) in court to recover fees owed to it for litigation work conducted during an administration.
The firm took action against Duncan Morris, an IP for the Redfern Partnership, to recover a cost order made in previous proceedings for £74,000 and around £135,000 of fees owed for litigation work Wright Hassall conducted between two firms in administration and third parties. After it became clear the two firms, which Morris was acting as administrator for, had insufficient assets to recover costs, court orders were sought to make Morris personally liable for the fees.
Wright Hassall has also sought an order to remove Morris as administrator for the two firms (Marketbalance Ltd and Phoenix Insurance Management Ltd), alleging he had acted in breach of his statutory duties, a practice known as misfeasance.
According to a judgment published yesterday, Wright Hassall has agreed some of the relief with the rest of the application being adjourned for a separate hearing.
Morris was approached in 2008 with a view to becoming an administrator for the two firms, which at the time were embroiled in litigation with a firm called Haven Insurance Co Ltd. Haven alleged that the two firms had wrongfully retained substantial insurance premiums which were owed to it, and obtained an order freezing up to £1.5m the two firms’ assets.
