Berkeley Applegate Order | 4K 2024 |

Under the Berkeley/Applegate standard, courts have established the following protocols for filing motions for attorney’s fees:

It prevents the company’s limited general funds from being used up on work that only benefits third-party trust owners. Limits of the Principle berkeley applegate order

The general rule in insolvency is that a liquidator's fees are paid out of the company’s own assets, not from assets it holds on trust for clients or investors. However, if the company’s own funds are insufficient and the liquidator must perform significant work to identify, manage, and return trust assets to their rightful owners, the court may exercise its discretion to grant a Berkeley Applegate order. When the Order is Made When the Order is Made Courts do not

Courts do not grant these orders automatically. To be successful, an insolvency practitioner typically must demonstrate two things: Furthermore, the court assesses remuneration based on "value

The court's discretion is not limitless. For example, in the Gillan v HEC Enterprises case involving the band Deep Purple, the court refused costs for work where administrators were acting in the interest of general creditors rather than specifically for the trust beneficiaries. Furthermore, the court assesses remuneration based on "value for money," considering factors like complexity and the time spent relative to the asset's value.