Blackadder v McQuinn & Ors (No.2)

The case of Blackadder v McQuinn & Ors (No.2) involved the dispute over the validity of the appointment of voluntary administrators of a company. The court was tasked with determining whether the administrators breached any relevant duty and if they were entitled to remuneration and costs. The primary issue was whether the administrators, who were invalidly appointed, could claim remuneration and costs on a quantum meruit basis. Another issue was whether the administrators complied with their duties and were entitled to the costs of the interlocutory process. The case also examined the extent to which the administrators were entitled to an equitable lien to secure any reasonable remuneration, costs, and disbursements incurred.

The court found that the administrators did not breach any relevant duty in accepting their appointments. The administrators were entitled to make a claim for remuneration on a quantum meruit basis, as they were invalidly appointed. The court rejected the argument that the administrators were not entitled to recover any remuneration or costs because they were incurred in breach of a duty owed at the time of and following their appointment. Instead, the court held that the administrators should be entitled to recover reasonable costs and fees in respect of work that was of incontrovertible benefit to the company. The court also held that the administrators complied with their duties and were entitled to the costs of the interlocutory process. Finally, the court found that the administrators were entitled to an equitable lien to secure any reasonable remuneration, costs, and disbursements incurred by them in their capacity as purported voluntary administrators.

The court declined to assess the remuneration and costs claimed by the administrators during the hearing, partly because NTRDS should have the opportunity to participate in that process, and partly because such assessment would be more conveniently carried out by the Master. The court held that the administrators were entitled to remuneration, costs, and disbursements, and that an equitable lien should be granted to secure those amounts. The court also held that the administrators were entitled to the costs of the interlocutory process. The final orders of the court were that the administrators were entitled to remuneration, costs, and disbursements, and that an equitable lien should be granted to secure those amounts. The administrators were also entitled to the costs of the interlocutory process.