BDO refused appeal in bid to recover cash from former Halliwells partner

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Readers' comments (12)

  • Expensive punt especially as the standard costs will be on top of the indemnity costs.

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  • Is Burns now advising Knowles and his pals on their extra-curricular investments?

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  • How kind of the AG partner to allow her associate to take all the glory.... now that's what I call leadership.

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  • On reflection, this looks like a case where both sides have lost.
    BDO have said, through leading counsel, that they have evidence to justify an allegation of fraud against Burns. They appear to have lost because they didn't plead this properly and raised the allegation late and in an inadmissible way, which probably says more about Addleshaws' litigation strategy than anything else.
    Warren J's judgment allows them to amend their pleading to allege fraud, but he points out that Burns was not uniquely culpable, and so if BDO plead fraud against him, they will have to against the others in his position.
    So BDO have a difficult choice if they don't succeed in appealing this decision. Either they plead fraud against all the Spinningfields defendants, or they let Burns go free. Lexa Hilliard was very confident that she had enough material to amend to plead fraud. Can BDO justify not pleading it and letting Burns get away? Lots of questions will be asked about their independence and integrity if they don't follow through with their threat to amend, particularly after spending so much of the creditors' money on this application.

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  • "We were disappointed by the liquidator’s decision to further deplete realisations by seeking to appeal the very comprehensive judgment of Mr Justice Warren."
    "Liquidators'....", not "liquidator's..."
    and
    "To deplete further...."
    Not "To further deplete....."
    I'm appalled.

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  • This doesn't seem right if the clean break was agreed with the former Halliwells partners before the administration. Sounds ripe for an appeal.

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  • I see the partner concerned has now 'fessed up! :)

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  • How can it be right that the creditors get stung for indemnity costs (depletion of realisations) because the Liquidators messed up? If you look at some of the commentary around BDO's fees on the Farepack matter you cannot help but feel that their industry needs better regulation and some legislative control over the fees which are charged. Why are the Liquidators not paying the indemnity costs personally if their strategy led to such an order? Why does it have to come out of the sums collected for the benefit of creditors?

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  • I bet the pedant has some exposure lol

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  • They are depleting the money already collected by having to dip into the creditors pot. If they appeal they will need to dip into it a bit more. When will it end?

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  • I wonder what word the Farepack creditors would use when describing BDO?

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  • Send the author his "I've been pedanted" t-shirt. Nothing escapes the critical gaze of the Pedant who is no doubt looking forward to his Friday night glass of sherry whilst doing a crossword from the bumper book of crosswords.

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