In the recent landmark case of Brandon Barnes v Eastenders Cash & Carry  EWCA Crim 2436 the Court of Appeal determined that it would be a breach of a company’s human rights if it had to meet the remuneration of its court appointed receiver, in circumstances where the Court of Appeal on a previous occasion had determined that the receivership order should never have been made (Windsor & Oths v CPS  1 WLR 2067). The receiver was required to return c.£500,000 of the company’s money which he had retained following his discharge to pay his own fees.
Following that decision the Company then brought a novel claim under Article 1 First Protocol against the receiver for the repayment of sums (c.£350,000) that had been paid out by the receiver on behalf of the company during the receivership (eg. insurance premiums, security guards, management staff, etc) , which would not have been paid out “but for” the receivership. In its recent decision in Brandon Barnes v Eastenders Cash & Carry (No.2)  EWHC 1057, the court (Underhill LJ) determined that the company was entitled to an order in the receivership account for repayment of sums paid out of the company’s funds by the receiver in respect of services to the company required only as a result of the receiver’s appointment.
Marc Glover respresented the Eastenders group of companies.
The decision is reported on Lawtel and Westlaw.