What did the Jersey Court decide in RTI Limited?
In Re James Pirie and Alan Roberts as Provisional Liquidators of RTI Limited [2026] JRC 216, the Royal Court of Jersey confirmed for the first time the principles it will apply when assessing applications to approve the remuneration and expenses of insolvency officeholders.
The Court adopted the framework set out by the Privy Council in Attorney General of Trinidad and Tobago v CL Financial [2025] UKPC 41, confirming that time spent will generally be the starting point for assessing remuneration in substantial insolvencies. However, the Court must ultimately be satisfied that remuneration is fair and reasonable and that the relevant costs were reasonably incurred.
The decision provides welcome guidance on the evidence insolvency officeholders should retain and present when seeking Court approval of remuneration and expenses.
We acted for the provisional liquidators of RTI Limited in obtaining the relevant approval orders.
Who will be interested in this decision?
This decision will be particularly relevant to liquidators, provisional liquidators, restructuring professionals, creditors and advisers involved in Jersey insolvency proceedings.
How will the Jersey Court assess insolvency officeholders’ remuneration and expenses?
The Court confirmed that, when considering an application to approve an insolvency officeholder's remuneration and expenses, it will generally begin with the time spent on the appointment. However, the ultimate question is whether the remuneration sought is fair and reasonable.
The Court identified several key principles. Time spent will ordinarily be the starting point for assessing remuneration, but the remuneration ultimately awarded must be fair and reasonable. Insolvency officeholders will generally be presumed to have acted with integrity unless there is evidence to the contrary, although they must still demonstrate that costs were reasonably incurred. This requires evidence that the work was reasonably undertaken and carried out at an appropriate level of seniority. The Court should also be provided with sufficient information to assess the application without unnecessary evidential detail.
What does 'reasonably incurred' mean?
The Court indicated that officeholders should be able to explain both why a particular task was necessary and why it was carried out by personnel with an appropriate level of experience and seniority. Maintaining clear records of decision-making, delegation and time allocation will therefore be important when seeking approval of remuneration and expenses.
Why is this judgment important for Jersey insolvency practitioners?
This is the first Jersey judgment to provide judicial guidance on the principles that will apply when the Court is asked to approve an insolvency officeholder's remuneration and expenses. By adopting the approach set out in CL Financial, the Court has aligned Jersey with a well-established framework used in other common law jurisdictions while providing greater certainty for officeholders and creditors involved in insolvency proceedings.
Practical steps for insolvency officeholders
Officeholders preparing future remuneration applications should consider:
- identifying key workstreams at the outset of an appointment;
- allocating recorded time to those workstreams;
- maintaining detailed records explaining why work was undertaken;
- ensuring work is delegated at an appropriate level of seniority;
- retaining accurate records of staff and adviser charge-out rates;
- documenting any changes to charging structures;
- maintaining evidence showing why costs were reasonably incurred; and
- presenting information in a proportionate and accessible format for the Court.
How does this decision relate to existing Jersey insolvency practice?
The decision provides judicial guidance on principles that insolvency practitioners are already familiar with under existing Jersey insolvency practice. In particular, it reinforces the importance of maintaining clear records demonstrating that fees, expenses and time costs have been properly and reasonably incurred.
