Vol 16 (2019) - Issue 1

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Re Lehman Brothers International (Europe) (In Administration) [2018] EWHC 924 (Ch) (24 April 2018)

Summary

Costs associated with the Waterfall IIC proceedings, and specifically the costs arising from the proper interpretation and effect of standardised ISDA master agreements were determined to be payable out of the estate given that proceedings had been initiated by the administrators so that they could proceed with the distribution of a surplus to creditors. Accordingly, as the application had been made in the interests of the general body of creditors, the usual principle that costs follow the event was not appropriate. However, in relation to issues arising out of a German master agreement, it was determined that as this had been instigated by the senior creditor group for its own benefit, this rightly entailed a costs liability for that group.