Administrators Win On Claims Management Costs
Freakley and others v Centre Reinsurance International Co and
others
HL
11 October 2006
Daily Law Notes Summary
Claims-handling expenses incurred on the instructions of insurers
acting under an insurance policy entered into by a company before
the appointment of administrators could not be treated as
liabilities incurred by the administrators in carrying out their
functions. The insurers’ right to reimbursement of such expenses
did not therefore have priority under s 19(5) of the Insolvency
Act 1986 over the company’s other debts.