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Burke & Ors v Peabody Construction Ltd [2024] EWHC 392 (Ch)

Matthew Weaver KC, instructed by Aaron Harlow, Hayley Çapani, Charles Williams and Aadil Qureshi of Shoosmiths, acted for the successful Applicants.

The Court overturned a decision awarding costs against the joint supervisors of a CVA. The Court emphasised that costs orders against a nominee are rare, and some element of personal misconduct is needed to justify them. Even where a CVA is flawed, it is quite another thing to say that its supervisors are guilty of professional misconduct in having supported it. The one does not follow from the other, and if allegations of misconduct are to be made, they must be properly identified and fairly put.

The judgment is a useful reminder to parties to a CVA challenge, as to what Joint Supervisors can and cannot do within proceedings and whether what they do legitimately opens them up to adverse costs orders.

Read more on the case here and the full judgment here.