In more general terms, this case brings into sharp focus the whole area of corporate liquidations.Leaving aside the specific facts of this case, I’ve always thought that there is a massive conflict between a company liquidator’s duty to maximise recovery in the interests of creditors (and in rare cases, shareholders) and the liquidator’s self-interest in maximising his own fees.walker liquidating estate liquidating liquidations tag sale tag sales Stephen Walker rummage sale ohio akron cleveland first day numbers as always priced to sell canton We look forward to seeing you at one, or more, of our really great Tag or Estate Sales Is Walker Liquidating in United States your business?
Of course, that conflict exists for lawyers as well in matters generally.
But lawyers are subject to the inherent discipline of having a client who will usually be reasonably diligent in ensuring that he isn’t charged utterly exorbitant fees, and clients can always insist on having their lawyer’s bill “taxed” by the Supreme Court.
” The enclosure ends with the following words: “Creditors deserve better.
Sack Mc Veigh now: Pay creditors what little is left.” Mr Cass has made allegations on his website to a similar effect, namely that Mr Mc Veigh is less concerned about creditors than he is about the financial benefit of himself and his lawyers.
Mr Cass’s statements clearly give the impression that Mr Mc Veigh is not discharging his duties to creditors.
The liquidator’s counsel conceded that it was not improper for Mr Cass to express an opinion about whether or not the liquidation has been handled competently.The case concerned attempts by the MUSU liquidator Dean Mc Veigh to seek an injunction to restrain an alleged contempt of court on the part of Benjamin Cass, the former President of MUSU.Cass’s alleged contempt consisted of (supposedly) attempting to intimidate the liquidator into settling claims against Cass and others on favourable terms.I’m not in any sense suggesting that all or even most liquidators are crooks or incompetent or more interested in enriching themselves than recovering money for creditors.But I have no doubt that such liquidators exist, and the current system contains few real safeguards against abuse.Cass’s intimidatory acts were to make a series of inflammatory allegations against Mc Veigh, both in a circular letter to MUSU creditors and on Cass’s blog called Make Mc Veigh Pay.