Legal bid launched to ban ex-Carillion directors from top boardroom roles – The Guardian

Posted January 14th, 2021 in company directors, disqualification, insolvency, news, public interest by tracey

‘The UK government has launched a legal bid to ban eight former Carillion directors from holding senior boardroom positions, almost three years on from the collapse of the outsourcing business.’

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The Guardian, 13th January 2021

Source: www.theguardian.com

Claimants in breast implant case buy cause of action to sue defendant’s lawyers – Litigation Futures

‘A leading defendant law firm and a QC have failed to strike out a professional negligence action brought after the claimants in a case they defended acquired their insolvent client’s cause of action.’

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Litigation Futures, 16th December 2020

Source: www.litigationfutures.com

CVAs, COVID-19 and Rescue Culture – 3 Hare Court

Posted November 10th, 2020 in company law, coronavirus, insolvency, news by sally

‘Businesses across the United Kingdom are facing treacherous times. The COVID-19 pandemic and its consequent restrictions have caused many businesses to suffer a pronounced drop in income, turnover and profits whilst still being liable to pay overhead costs such as rent to landlords. When businesses start to re-open, they will need to find a way to pay the overhead costs accrued during the COVID-19 pandemic, as well as ongoing costs.’

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3 Hare Court, 2nd November 2020

Source: www.3harecourt.com

Do Practice Directions make perfect? – Hardwicke Chambers

Posted November 10th, 2020 in civil procedure rules, insolvency, news, practice directions, remote hearings by sally

‘By way of introduction to this topic it is worth recalling that by the time the Insolvency (England and Wales) Rules 2016 (“IR 2016”) came into force in April 2017 the Practice Direction on Insolvency Proceedings (“IPD”) had still not been updated to take account of the reforms introduced by IR 2016. Nor had it been updated to take account of the Electronic Working Pilot Scheme in CPR Practice Direction 51O (“EWPS”). In fact, there followed a significant period during which the IPD and IR 2016 were not compatible. The delay was at least in part caused by the reforms to the court system in England and Wales that resulted in the creation of the Business and Property Courts (“B&PC”). A new Practice Direction to govern the procedure in the B&PC came into effect in October 2017 and although subsequently supplemented by other changes, it was not until 25 April 2020 that a revised IPD, compatible with IR 2016, was finally released and even this was quickly superseded by a more definitively revised IPD on 4 July 2018. However, there were some significant anomalies with regard to the intermeshing of these various procedural rules and practice directions, not least in the area of out-of-court appointments of administrators.’

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Hardwicke Chambers, 7th October 2020

Source: hardwicke.co.uk

Former BHS owner found guilty of tax evasion as he ‘funded yacht, Bentley and luxury holiday’ – The Independent

Posted November 6th, 2020 in bankruptcy, corporation tax, insolvency, news, pensions, tax evasion, taxation, VAT by tracey

‘The former owner of BHS has been convicted of evading tax on £2.2m of income he received from buying the failed high-street chain. Instead of paying the tax he knew he owed, Dominic Chappell, 53, spent a fortune on a luxury lifestyle that included a £90,000 yacht, a Bentley Continental car, a Bahamas holiday and some expensive Beretta guns, Southwark Crown Court heard.’

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The Independent, 5th November 2020

Source: www.independent.co.uk

Novation, step-in and a potential problem with CIGA 2020 – Practical Law: Construction Blog

Posted November 4th, 2020 in construction industry, contracts, employment, insolvency, news by tracey

‘Where the contractor has become insolvent, what obligations can an employer enforce when stepping-in to a previously novated professional consultant’s appointment in a design and build scenario?’

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Practical Law: Construction Blog, 3rd November 2020

Source: constructionblog.practicallaw.com

Recovery against insolvent estates – The 36 Group

‘Local authorities frequently have cause to seek recovery of sums owing from the estates of deceased persons, particularly (but not exclusively) in relation to care home fees owed by the deceased.’

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The 36 Group, 26th October 2020

Source: 36group.co.uk

CVA – 3 Hare Court

Posted October 27th, 2020 in company law, compromise, insolvency, news by sally

‘In this article Richard Bottomley gives an overview of what Company Voluntary Arrangements (“CVAs”) are, when they are used and the advantages and disadvantages to the company and creditors.’

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3 Hare Court, October 2020

Source: www.3harecourt.com

Furlough and administration: when is a contract of employment ‘adopted’? – Exchange Chambers

‘The Coronavirus Job Retention Scheme (the scheme) has been ground breaking for employers, employees and administrators of insolvent companies, each of whom have swiftly adjusted to the practical and commercial effects of the scheme. The scheme very quickly gave rise to applications to the High Court, by administrators of high-profile companies, for directions as to whether a contract of employment of a “furloughed employee” had been “adopted” by an administrator. If it was, the “wages or salary” (which are defined by paragraph 99(6) of schedule B1 of the Insolvency Act 1986 (the Act) to include holiday pay and sick pay) would have super-priority over (a) the administrators’ remuneration and (b) a floating charge, under paragraph 99(3) and (4) of schedule B1 of the Act.’

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Exchange Chambers, 13th October 2020

Source: www.exchangechambers.co.uk

Time isn’t on your side and resolving old disputes is never easy – Practical Law: Construction Blog

‘Time flies when you are having fun, or so the saying goes. I think it flies whether you are having fun or not, although I’m sure we’ve all experienced those moments when it isn’t flying at all and it feels like it has stood still. As Pink Floyd famously sang, “Ticking away the moments that make up a dull day”. You may wonder why I am talking about time. Well, it’s because of the events leading up to Fraser J’s judgment in John Doyle Contractors Ltd v Erith Contractors Ltd. They are all to do with time.’

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Practical Law: Construction Blog, 29th September 2020

Source: constructionblog.practicallaw.com

Successful adjudication enforcement in favour of an insolvent company – Practical Law: Construction Blogger

‘Hot on the heels of the Supreme Court’s decision in Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd, in what may be the first summary judgment to enforce an adjudicator’s decision in favour of a party in administration, we have successfully represented the claimant in Styles and Wood Ltd (in administration) (S&W) v GE CIF Trustees Ltd.’

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Practical Law: Construction Blog, 1st October 2020

Source: constructionblog.practicallaw.com

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

Leicester garment factory bosses banned from running businesses for more than 400 years – The Guardian

Posted September 4th, 2020 in company directors, fraud, HM Revenue & Customs, insolvency, news, taxation by sally

‘Directors of clothing manufacturers in Leicester have been struck off for a combined total of more than 400 years in cases costing HMRC millions, data shared with the Guardian reveals.’

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The Guardian, 3rd September 2020

Source: www.theguardian.com

Re Debenhams Retail: do the wages of furloughed employees enjoy super priority in an insolvency? – Hardwicke Chambers

‘The Appellants were the Joint Administrators of Debenhams Retail Ltd (“the Company”), which had entered into administration on 9 April 2020. This had followed decisions in late March to place some 14,000 of its employees on furlough under the Government’s Coronavirus Job Retention Scheme (“the Scheme”).’

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Hardwicke Chambers, 11th August 2020

Source: hardwicke.co.uk

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

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

Coronavirus and property: keep taking the medicine – Falcon Chambers

‘In the midst of the coronavirus pandemic Parliament has been, and continues to be, very active. This note provides a quick update in relation to the latest developments on four fronts: (1) forfeiture; (2) CRAR; (3) insolvency; (4) planning.’

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Falcon Chambers, 29th June 2020

Source: www.falcon-chambers.com

‘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