Case Comment: Sevilleja v Marex Financial Ltd [2020] UKSC 31 – UKSC Blog

Posted September 4th, 2020 in appeals, company law, damages, debts, insolvency, news, shareholders, Supreme Court, third parties by sally

‘In this case comment, David Bridge and Jessica Foley, both solicitor-advocates within the CMS litigation & arbitration team, comment on the decision handed down by the UK Supreme Court earlier this summer in the matter of Sevilleja v Marex Financial Ltd [2020] UKSC 31, which concerned whether the rule against reflective loss bars creditors of a company from claiming directly against a third party for asset-stripping the company.’

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UKSC Blog, 4th September 2020

Source: ukscblog.com

Section 233B of the Insolvency Act 1986: Implications for suppliers and debtor companies – Forum Chambers

Posted August 14th, 2020 in chambers articles, company law, enforcement, insolvency, news by sally

‘For over twenty years, section 233 of the Insolvency Act 1986 (“IA 1986”) has restricted the contractual freedom of parties, but only in the context of a narrow range of contracts for the supply of utilities such as gas, water and electricity when a company enters into a specified insolvency process. In 2015, further restrictions to the enforcement of insolvency related contract terms were introduced, though again only with regard to this narrow range of contracts. The new section 233B IA 1986, by contrast, is far broader in scope and puts a significant dent in the ability of parties to enforce and vary contractual terms. This article considers the implications of the new provision, which entered into force on 26 June 2020.’

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Forum Chambers, 10th August 2020

Source: www.forumchambers.com

Reining in the rule against reflective loss: Sevilleja v Marex Financial Ltd – Hardwicke Chambers

Posted July 30th, 2020 in causation, company law, damages, insolvency, news, shareholders, Supreme Court by sally

‘In a much-anticipated judgment, the Supreme Court in Sevilleja v Marex Financial Ltd unanimously allowed an appeal against a decision which, if it had been allowed to stand, would have denuded the intentional economic torts of much of their practical utility.’

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Hardwicke Chambers, 28th July 2020

Source: hardwicke.co.uk

Reflecting on “reflective loss”: Case note on Sevilleja v Marex Financial Ltd [2020] UKSC 31 – Hailsham Chambers

Posted July 30th, 2020 in causation, company law, damages, insolvency, news, shareholders, Supreme Court by sally

‘The appeal to the Supreme Court in Sevilleja v Marex Financial Ltd [2020] UKSC 31 re-states the principle that a company’s shareholders cannot recover damages against a wrongdoer for loss which is “reflective” of a loss caused by the wrongdoer to the company itself.’

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Hailsham Chambers, July 2020

Source: www.hailshamchambers.com

New Judgment: Lehtimaki & Ors v Cooper [2020] UKSC 33 – UKSC Blog

Posted July 30th, 2020 in charities, company law, fiduciary duty, jurisdiction, news, Supreme Court by sally

‘The Children’s Investment Fund Foundation is a charitable company with more than $4bn in assets helping children in developing countries. It was founded by Sir Christopher Hohn and Ms Jamie Cooper in 2002, but it became difficult to manage when their marriage broke down. These proceedings stem from the steps they took to resolve those difficulties. Specifically, they agreed that in exchange for a grant of $360 million to Big Win Philanthropy, a charity founded by Ms Cooper, she would resign as a member and trustee of CIFF.’

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UKSC Blog, 29th July 2020

Source: ukscblog.com

Sevilleja v Marex: Reflective Loss Restated – 4 New Square

Posted July 30th, 2020 in causation, company law, damages, insolvency, news, shareholders, Supreme Court by sally

‘The Supreme Court’s decision in Sevilleja v. Marex Financial Ltd, 15 July 2020, fundamentally restates the doctrine of reflective loss in company law so that:

A claim by a company’s creditor against a third party will not be barred where it reflects loss suffered by the company, even if the creditor is also a shareholder; and
There is no longer an exception to the doctrine where the wrongdoer has brought about the company’s impecuniosity.’

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4 New Square, 17th July 2020

Source: www.4newsquare.com

FCA begins case over insurers’ refusal to pay firms’ Covid-19 claims – The Guardian

‘The City regulator will on Monday begin a test case on behalf of thousands of businesses that claim they should have been paid by insurers to cover closures during the coronavirus pandemic.’

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The Guardian, 20th July 2020

Source: www.theguardian.com

Redundancy: Principles and Calculations Revisited – 33 Bedford Row

Posted July 10th, 2020 in chambers articles, company law, coronavirus, employment, news, redundancy by sally

‘This article has been prepared by two barristers at 33 Bedford Row outlining the basic principles in relation to redundancy as well as calculation of any redundancy payment.’

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33 Bedford Row, 30th June 2020

Source: www.33bedfordrow.co.uk

‘Breathing space’: the impact of a more consensual approach – 3 Hare Court

‘On 27 April 2020 the British Institute of International and Comparative Law (BIICL) published Breathing Space – a Concept Note on the effect of the pandemic on commercial contracts. The central thesis is that to mitigate the damaging effects of COVID-19 on the global economy, private law should encourage compromise and mediation rather than a zero-sum rush to terminate contracts and then to litigation and arbitration.

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3 Hare Court, 29th June 2020

Source: www.3harecourt.com

Covid-19: What Are My Redundancy Rights? – Each Other

Posted July 8th, 2020 in company law, coronavirus, employment, news, redundancy by sally

‘In the past week, thousands of people have lost their jobs across the UK due to the impact of Covid-19.’

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Each Other, 7th July 2020

Source: eachother.org.uk

Case Comment: Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25 – UKSC Blog

Posted July 3rd, 2020 in appeals, company law, insolvency, news, Supreme Court by sally

‘In this case comment, Adrian Bell, Nigel Lewis, Steven Bell and Shona Frame, all partners within the CMS Infrastructure, Construction and Energy Disputes Group, comment on the decision handed down in June 2020 in the matter of Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25.’

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UKSC Blog, 1st July 2020

Source: ukscblog.com

Insolvent Companies and Adjudication: Bresco Services Limited v Michael J Lonsdale [2020] UKSC 25 – Hardwicke Chambers

‘Adjudication is a quick and comparatively cheap method of dispute resolution and for those reasons is attractive to insolvent companies seeking to recover debts. However, a respondent was likely to be able to restrain the insolvent company from referring the matter to adjudication on the basis that it would be futile to do so, since any positive decision was unlikely to be enforced as a result of the very fact of the company’s insolvency. Therefore, any award lacked practical utility. Following the decision of the Supreme Court in Bresco v Lonsdale, that is no longer the case.’

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Hardwicke Chambers, 17th June 2020

Source: hardwicke.co.uk

Restoring companies to the register: article exploring issues arising in mesothelioma litigation and the conflict between the Compensation Act 2006 and 2010 – Parklane Plowden Chambers

‘This article intends to investigate probably well-rehearsed principles implied in bringing actions for personal injury against long-since defunct and even dissolved companies.’

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Parklane Plowden Chambers, 10th June 2020

Source: www.parklaneplowden.co.uk

The New Corporate Insolvency and Governance Bill – A Summary of the Key Provisions – Radcliffe Chambers

Posted June 3rd, 2020 in bills, chambers articles, company law, coronavirus, insolvency, news by sally

‘This summary gives a short overview of the Corporate Insolvency and Governance Bill, which was first read in the House of Commons
on 20 May 2020 and is intended to proceed to the House of Lords following its final stages in the House of Commons on 3 June 2020. This Bill represents the biggest reforms to the UK’s insolvency framework since the Enterprise Act in 2002. The aim is to allow more tools to rescue struggling companies as a going concern and help more businesses weather the COVID-19 storm and avoid entering an insolvency process.’

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Radcliffe Chambers, 26th May 2020

Source: radcliffechambers.com

First update on collective consultation: defining the triggers – Littleton Chambers

‘In the first of what is planned to be five updates on collective consultation under the shadow of the coronavirus pandemic, David Reade QC and Daniel Northall examine the employer’s proposal for redundancy and the start of collective consultation.’

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Littleton Chambers, 11th May 2020

Source: littletonchambers.com

Derivative actions involving LLPs: common law test for permission trumps section 263 of the Companies Act 2006 – Hardwicke Chambers

On 21 April 2020, Zacaroli J allowed an appeal brought against the decision of HHJ Saunders in Homes of England v Nick Sellman (Holdings) Limited. The case concerned Bromham Road Development LLP (BRD), a limited liability partnership which owned the freehold of a property situated at 51 Bromham Road, Bedford (the property). Homes of England (HoE) and Nick Sellman (Holdings) Limited (Holdings) are each 50% partners in BRD. HoE alleged that Holdings, in breach of duties of honesty and good faith owed to HoE, and in breach of a duty to act in the best interests of BRD, delayed in executing documentation required to refinance the property. HoE alleged that this delay increased the amount required to redeem BRD’s original loan from Wellesley Finance plc by £206,933.21.

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Hardwicke Chambers, 1st May 2020

Source: hardwicke.co.uk

The Response to Covid-19: Likely Corporate Insolvency Reforms and their Merit – 3 Hare Court

Posted May 5th, 2020 in company law, coronavirus, foreign jurisdictions, insolvency, news by sally

‘Countries around the globe have been grappling with the fallout from the Covid-19 pandemic. Amongst many issues the crisis has thrown up is the issue of how to deal with companies which suffer from solvency issues as a result of the pandemic, or government measures taken in response to the pandemic. The response of different jurisdictions has varied, as has the speed of the response. This article looks at the UK’s likely response and how it compares to other jurisdictions.’

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3 Hare Court, 23rd April 2020

Source: www.3harecourt.com

An Insight into Business Interruption Insurance: Causation & Quantum – Hailsham Chambers

‘This article is the second in a series from Hailsham Chambers addressing insurance implications from the current Covid-19 situation. It explores various causation, mitigation and quantum issues that are likely to arise in that litigation.’

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Hailsham Chambers, April 2020

Source: www.hailshamchambers.com

Furloughed from work? It pays to know your rights – The Guardian

Posted May 4th, 2020 in company law, coronavirus, emergency powers, employment, news, remuneration by sally

‘The rules of the government’s job retention scheme are complex. We put your questions to an employment specialist to cut through the confusion.’

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The Guardian, 3rd May 2020

Source: www.theguardian.com

Financial watchdog asks courts to clarify coronavirus business insurance – The Guardian

‘Britain’s financial watchdog is urgently seeking clarity from the courts over the insurance rights of companies whose business has been disrupted by the Covid-19 pandemic.’

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The Guardian, 1st May 2020

Source: www.theguardian.com