Category: insolvency

“Off-Plan” Investment Schemes: Equitable Compensation – Hardwicke Chambers

Posted August 9th, 2018 in breach of trust, client accounts, compensation, equity, indemnities, insolvency, insurance, news, solicitors, Solicitors Regulation Authority by sally

‘The SRA has issued warning notices[1] to solicitors regarding whether they should act and how they should act towards their clients in relation to purported transactions concerning investment schemes. However, for many the warning will have come too late since many investors have previously parted with deposits (in some cases amounting to the client’s life savings) in return for worthless insurance bonds and unsecured interests in land or property which are also found to be worthless when the developer defaults on the development and becomes insolvent.’

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Hardwicke Chambers, 12th July 2018

Source: www.hardwicke.co.uk

‘It’s not fair on you to continue’ – judge kills off LiP’s epic claim – Law Society’s Gazette

Posted August 9th, 2018 in abuse of process, insolvency, litigants in person, news, striking out by tracey

‘A High Court judge has sought once and for all to close three-year proceedings brought by a litigant in person, saying it is not fair to use court time to indulge the matter any further.’

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Law Society's Gazette, 9th August 2018

Source: www.lawgazette.co.uk

Fire safety duties for insolvency practitioners – OUT-LAW.com

Posted August 7th, 2018 in fire, health & safety, insolvency, news by sally

‘When a business goes into insolvency, insolvency practitioners may become responsible for fire safety. Those responsibilities will change if the Hackitt Review’s post-Grenfell recommendations are implemented, particularly if the insolvency involves buildings where people sleep.’

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OUT-LAW.com, 7th August 2018

Source: www.out-law.com

Losing out on loss of bargain when terminating in reliance upon contractual rights – Practical Law: Construction Blog

Posted July 5th, 2018 in construction industry, contracting out, contracts, damages, insolvency, news, telecommunications by tracey

‘In the wake of the Carillion insolvency, many sub-contractors are likely to be investigating their rights to terminate their contracts with a now defunct main contractor. Looking for a clean break, they may be tempted by the explicit termination rights that standard form building contracts often contain, and that may be deployed in the event of main contractor insolvency. On the surface, terminating appears as simple as writing to the liquidator citing the relevant provision, and declaring the contract to be at an end. However, a potential trap awaits the unwary. Unwitting sub-contractors may inadvertently forfeit any right to claim loss of bargain damages, that is, the loss of profits that would have been made had the contract carried through to completion. This is potentially a highly lucrative right, particularly if the sub-contractor is at the start of a multi-year project that was expected to generate significant future earnings. This result arises from the case of Phones 4U Ltd (in administration) v EE Ltd.’

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Practical Law: Construction Blog, 4th July 2018

Source: constructionblog.practicallaw.com

CVA should not proceed following emergence of £126m claim, says UK court – OUT-LAW.com

Posted June 29th, 2018 in company law, contracts, insolvency, news by tracey

‘The Court of Appeal in England and Wales has ruled that a company voluntary arrangement (CVA) should not continue after the emergence of a new claim for £126 million against the insolvent company. The ruling underlined how important clarity and specificity are in contract terms.’

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OUT-LAW.com, 29th June 2018

Source: www.out-law.com

Court uses correspondence to clarify settlement wording – OUT-LAW.com

Posted June 6th, 2018 in drafting, insolvency, liquidators, news by tracey

‘Companies and lawyers must be clear and unambiguous when drafting settlement agreements, a court ruling has reminded them. A liquidator had to drop some claims after a court used correspondence to clarify exactly what was meant by the phrase “whole of the claim” in a compromise agreement. The ruling does not affect the liquidator’s claim against another person because she was not mentioned in the correspondence.’

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OUT-LAW.com, 5th June 2018

Source: www.out-law.com

Directors personally liable for invalid solvency statement and breach of duty – OUT-LAW.com

Posted May 23rd, 2018 in banking, company directors, insolvency, news by tracey

‘A solvency statement was found to be invalid, a reduction in capital and distribution unlawful and three directors in breach of their duties after a corporate reorganisation left a company unable to meet its liabilities, the High Court has ruled.’

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OUT-LAW.com, 22nd May 2018

Source: www.out-law.com

Ex-BHS owner Dominic Chappell to sue Sir Philip Green – Daily Telegraph

Posted April 9th, 2018 in company directors, insolvency, news, pensions by tracey

‘Former BHS owner Dominic ­Chappell plans to sue Sir Philip Green and contest a proposed boardroom ban in a bid to repair his “tarnished ­reputation” and resurrect his career.’

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Daily Telegraph, 9th April 2018

Source: www.telegraph.co.uk

Former BHS owner Chappell faces boardroom ban but Sir Philip Green escapes sanction over collapse – Daily Telegraph

Posted March 28th, 2018 in company directors, financial regulation, insolvency, news, pensions, sanctions by tracey

‘Former BHS owner Dominic Chappell will be banned from serving as company director for up to 15 years over his role in the the high street chain’s collapse, while its previous owner Sir Philip Green will escape any sanction. The Insolvency Service said that the retail mogul Sir Philip, who sold BHS to thrice bankrupt Mr Chappell little over a year before its demise for £1, will not face further action.’

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Daily Telegraph, 27th March 2018

Source: www.telegraph.co.uk

Supreme Court: use of corporate vehicles did not avoid limitation exception – OUT-LAW.com

Posted March 23rd, 2018 in company directors, fiduciary duty, insolvency, limitations, news, Supreme Court, third parties, trusts by tracey

‘Company directors were said to be responsible for assets despite their use of corporate vehicles, the Supreme Court has ruled (12-page / 157KB PDF). The ruling means that a six year limitation period stopping liquidators taking legal action against the directors does not apply. This case will impact future misfeasance actions. Director and officer indemnity insurers should take note of this decision as it confirms that the English courts are unwilling to accept the six-year limitation defence for actions against directors following the disposal of company assets in breach of fiduciary duty for economic gain.’

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OUT-LAW.com, 23rd March 2018

Source: www.out-law.com

BHS to repay rental discounts says High Court – OUT-LAW.com

Posted March 15th, 2018 in agreements, company law, insolvency, news, rent by tracey

‘The High Court has said that BHS cannot challenge the terms of its own company voluntary arrangement (CVA) as unenforceable contractual penalties. The case provides guidance as to how CVAs operate post termination and the payment of rent as an expense of a company’s administration in priority to other debts.’

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OUT-LAW.com, 14th March 2018

Source: www.out-law.com

Harbour View, contractor insolvency and the importance of a guarantee expiry date – Practical Law: Construction Blog

Posted February 21st, 2018 in construction industry, guarantees, insolvency, news, time limits by tracey

‘One of the interesting features of the recent decision of Coulson J in Ziggurat (Claremont Place) LLP v HCC International Insurance Company Plc is the effect on a guarantee of a contractor becoming insolvent many years after a construction project has been completed. In Ziggurat, the amended ABI model form of guarantee bond had not yet expired. This allowed the employer to make a claim under the guarantee arising out of the contractor’s insolvency, notwithstanding the fact that the contractor’s employment had already been terminated and the project had achieved practical completion.’

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Practical Law: Construction Blog, 21st February 2018

Source: constructionblog.practicallaw.com

High Court says it cannot permanently stay enforcement of English law debt obligations in favour of a foreign insolvency proceeding – OUT-LAW.com

Posted February 6th, 2018 in banking, debts, enforcement, foreign jurisdictions, insolvency, news by tracey

‘The High Court has said that it could not impose a permanent moratorium against creditor action in England and Wales where the foreign restructuring of an Azerbijan bank had been recognised as a foreign main proceeding under the Cross-Border Insolvency Regulations.’

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OUT-LAW.com, 5th February 2018

Source: www.out-law.com

Sub-contractor insolvency – what lengths would you go to? – Practical Law: Construction Blog

Posted January 24th, 2018 in construction industry, contracts, insolvency, news by tracey

‘Over the past few months, a number of large construction companies have been making headlines for facing severe financial difficulties. However, sub-contractor insolvency can also cause considerable problems for other parties on construction projects who have contractual relations with that party.’

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Practical Law: Construction Blog, 24th January 2018

Source: constructionblog.practicallaw.com

Ziggurat: the crumbling edifice of surety bonds – Practical Law: Construction Blog

Posted January 19th, 2018 in construction industry, contracts, insolvency, news, surety by tracey

‘I read the decision in Ziggurat with some incredulity. I hadn’t intended to trespass on Karen Spencer’s territory, and overall I’d agree with her conclusion that the amendments made to the ABI form seem to have confused rather than clarified matters. I’d also agree with Roddy Cormack’s comment that more radical surgery is needed if the employer wishes to secure earlier payment following the contractor’s insolvency. But I did want to offer some thoughts on what the decision tells us about wider issues in the surety bonding market.’

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Practical Law: Construction Blog, 17th January 2018

Source: constructionblog.practicallaw.com

BT faces £120m Phones 4u claim after High Court defeat – Daily Telegraph

Posted January 18th, 2018 in contracts, insolvency, news, private equity, telecommunications by tracey

‘Phones 4u has dealt a blow to Britain’s biggest mobile operator from beyond the grave, winning a key battle in a long campaign by its administrators to extract £120m in unpaid commission from EE.’

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Daily Telegraph, 17th January 2018

Source: www.telegraph.co.uk

Statutory interest paid by a company in administration must have tax deducted, says Court of Appeal – OUT-LAW.com

Posted January 8th, 2018 in appeals, banking, corporation tax, insolvency, interest, news, taxation by sally

‘Statutory interest paid by a company in administration on a surplus is ‘yearly interest’ for UK tax purposes and must therefore be paid after deduction of basic rate tax, the Court of Appeal has decided, overturning a previous decision of the High Court.’

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OUT-LAW.com, 5th January 2018

Source: www.out-law.com

Security for costs: ATE policies – Hardwicke Chambers

Posted November 22nd, 2017 in civil procedure rules, costs, insolvency, insurance, judgments, news by sally

‘In a commendable judgment dated 24 October 2016 in Premier Motorauctions v Pricewaterhouse Coopers, Snowden J injected a much needed dose of realism into an issue which had, for too long, suffered from a regrettable degree of uncertainty, namely security for costs applications against parties with after the event (ATE) insurance cover. Cases this year suggest that this is now a go-to authority for applications of this sort.’

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Hardwicke Chambers, 16th November 2017

Source: www.hardwicke.co.uk

Autumn Newsletter – Falcon Chambers

Posted November 22nd, 2017 in adverse possession, barristers, boundaries, contracts, duty of care, easements, estoppel, freedom of expression, housing, injunctions, insolvency, land registration, landlord & tenant, leases, legal services, misrepresentation, negligence, news, planning, restraint orders, restrictive covenants, rights of way, statutory interpretation, third parties, tribunals by sally

– Prescriptive easements – a glass half-full: out with the negative; in with the positive 10

– Keeping the Title Clean: Unwanted Notices and Restrictions 12

– Estoppel in Pre-Contractual Negotiations 15

– The Curse of the Freebie 17

– Voidable and no Mistake 20

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Falcon Chambers, November 2017

Source: www.falcon-chambers.com

Treat Insolvency Rules as ‘a complete code’ for payment of statutory interest, rules Court of Appeal – OUT-LAW.com

Posted November 13th, 2017 in administrators, appeals, codes of practice, debts, insolvency, interest, judgments, news, regulations, statutory interpretation by tracey

‘The Court of Appeal has determined the extent of creditors’ entitlements to statutory interest on their debts and the correct approach for calculating their entitlement. It has ruled on the entitlement of representative creditors of Lehman Brothers International (Europe) (LBIE) to the surplus funds and on the calculation of the statutory interest due to them.’

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OUT-LAW.com, 10th November 2017

Source: www.out-law.com