Examiner's Costs take priority over Liquidator's Costs

In a recent Supreme Court decision, Re Springline Limited, it was decided that an Examiner's costs would take precedence over all other claims including liquidation costs.

The issue before the Court was whether the remuneration, costs and expenses of an Examiner of a company must be paid in full out of the assets of the company before payment of any of the costs of a Liquidator appointed by the High Court after the Examiner had ceased to act. In this particular case an Examiner had been appointed, and having concluded that the company could not survive as a going concern, an Official Liquidator was appointed by the High Court. Shortly after the Liquidators appointment, the Examiner applied to the High Court for an order sanctioning his remuneration, costs and expenses. In the light of this application the Liquidator applied to the court for a determination as to the priority (if any) to be given in the winding up to that claim. The Liquidator had brought to the court's attention