Thursday 30 January 2014

Isle of Man: High Court considers appointment and role of conflict liquidator

Earlier this week the High Court of Justice gave judgment in Malone v Mitchell (CHP 13/0140). This decision is noteworthy because it appears to be the first Manx decision to consider the appointment and role of a so-called conflict liquidator. The judge - His Honour The Deemster Doyle, First Deemster and Clerk of the Rolls - applied the approach adopted in the English High Court by Mr Justice Newey in Re York Gas Ltd [2010] EWHC 2275 (Ch) and held that in the case before him there where reasons for declining to appoint a conflict liquidator from within the same firm as the liquidator. Deemster Doyle observed (at para. 80): "I accept on the basis of Re York Gas that the appointment of an additional office-holder as conflict liquidator from the same firm or company as the liquidator can, in principle, sometimes provide a cost effective and efficient solution to a conflict in respect of the determination of a proof of debt". A summary of the judgment is available here (pdf).

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