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Krasner v McMath
''Krasner v McMath'' () (EWCA Civ 1072 ) (also, ''Re Huddersfield Fine Worsteds Ltd'') is a UK labour and insolvency law case concerning the priority of payments to workers of an insolvent company in priority to other creditors.
==Facts==
Gerald Krasner was the administrator of an insolvent worsted company, in an appeal joined to another two companies. Barry McMath was one of the employees claiming that his right to compensation for the employer’s failure to consult the workforce about redundancies was payable in priority to the expenses of administration. TULRCA 1992 s 188 gives the right to be consulted 90 days in advance where there are twenty or more dismissals, s 189 gives the right to a ‘protective award’ in lieu of consultation and s 190 specifies this should be one week’s pay per missed week. Mr McMath’s contract had been adopted (in priority to administration expenses) under IA 1986 Sch B1 para 99, and so was owed any ‘liability arising under a contract of employment’. Were protective awards in that category?
Peter Smith J in one case had held that they were payable in priority and Etherton J in the other had held they were not.
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