Supreme Court rules on creditor duty – Law Society’s Gazette

“The Supreme Court has handed down a significant judgment in BTI 2014 LLC v Sequana SA. It addresses the existence, substance and circumstances of the ‘creditor duty’ – the duty of company directors to consider or act in accordance with the interests of companies’ creditors in the context of prospective insolvency.”

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Law Society's Gazette, 14th October 2022

Source: www.lawgazette.co.uk

Supreme Court rules on directors duty to act in interests of creditors – OUT-LAW.com

‘Company directors need to remain wary of their duty to consider the interests of creditors in certain circumstances, despite a new UK Supreme Court ruling that they are likely to welcome, experts have said.’

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OUT-LAW.com, 10th October 2022

Source: www.pinsentmasons.com

New Judgment: BTI 2014 LLC v Sequana SA and others [2022] UKSC 25 – UKSC Blog

‘This appeal raised questions of considerable importance for company law. It provides the first opportunity for the Supreme Court to consider the existence, content and engagement of the so-called “creditor duty”: the alleged duty of company directors to consider, or to act in accordance with, the interests of the company’s creditors when the company becomes insolvent, or when it approaches, or is at real risk of, insolvency.’

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UKSC Blog, 5th October 2022

Source: ukscblog.com

TCC provides reminder of the meaning of paragraph 9(2) of the Scheme – Practical Law: Construction Blog

Posted August 19th, 2022 in construction industry, dispute resolution, guarantees, insolvency, news by tracey

‘I appreciate that some of you might be reading this blog on your summer holidays, so you may well have far better things to be doing with your time (ordering another piña colada perhaps?). I will therefore keep the blog short – what might be termed a “blogette”. As one would expect over the summer break, there haven’t been many reported TCC cases recently and so the case I want to discuss today is from June, namely ML Hart Builders Ltd (in liquidation) v Swiss Cottage Properties Ltd, which is a judgment of Mr Roger Ter Haar QC sitting as a deputy High Court judge.’

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Practical Law: Construction Blog, 17th August 2022

Source: constructionblog.practicallaw.com

Lincoln Covid loan abuser gets 10-year business ban – BBC News

Posted August 8th, 2022 in company directors, coronavirus, insolvency, loans, news by tracey

‘A Lincoln student has been banned from running a company for 10 years after abusing a Covid recovery loan.’

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BBC News, 8th August 2022

Source: www.bbc.co.uk

Unlocking the crypt: insolvency & cryptocurrency – New Law Journal

Posted July 13th, 2022 in bankruptcy, company directors, cryptocurrencies, insolvency, news by tracey

‘Despite the UK’s intention to be a global leader in cryptoassets, the courts are still wrestling with the basics: Rachel Coyle of 36 Commercial explains why it’s time to get to grips with the insolvency context.’

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New Law Journal, 8th July 2022

Source: www.newlawjournal.co.uk

FTH v Varis Developments – adjudication and insolvency meet head on again – Practical Law: Construction Blog

‘In its decision in Bresco v Lonsdale, the Supreme Court confirmed that insolvent companies have the statutory and contractual right to adjudicate construction disputes, even if that claim is affected by insolvency set-off.’

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Practical Law: Construction Blog , 29th June 2022

Source: constructionblog.practicallaw.com

The obligation to pay a notified sum where the contractor is insolvent – Practical Law: Construction Blog

Posted June 17th, 2022 in construction industry, enforcement, insolvency, news by tracey

‘The general rule created by section 111 of the Construction Act 1996 is well known: in the absence of a pay less notice, the notified sum is to be paid without set-off or deduction. Although this is capable of causing problems for an employer in the short term, any overpayments can usually be corrected in future payment cycles (whether interim or final) or by a true value adjudication (following S&T (UK) Ltd v Grove Developments Ltd).’

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Practical Law: Construction Blog, 15th June 2022

Source: constructionblog.practicallaw.com

Solicitors lose appeal over £2m invoice charged through DBA – Law Society’s Gazette

Posted May 13th, 2022 in appeals, costs, damages, insolvency, law firms, news, solicitors by tracey

‘The Court of Appeal has dismissed an attempt by solicitors to secure a £2m payment from an insolvent client for work carried out on a damages based agreement.’

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Law Society's Gazette, 12th May 2022

Source: www.lawgazette.co.uk

Case Preview: Stanford International Bank Ltd (In Liquidation) v HSBC Bank Plc – UKSC Blog

Posted April 27th, 2022 in appeals, banking, damages, debts, insolvency, liquidators, news, Supreme Court by sally

‘On 19 January 2022, the Supreme Court heard the appeal in Stanford International Bank Ltd (In Liquidation) v HSBC Bank Plc. The appeal turns on whether a company in liquidation can be considered to have suffered loss where, while it is still trading, its bank pays money out of the company’s accounts to discharge debts owed by the company. It is likely that this case will further set out the limits of the Quincecare duty, following a spate of recent high-profile cases in this area.’

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UKSC Blog, 26th April 2022

Source: ukscblog.com

JCT’s insolvency payment regime – how does it work? – Practical Law: Construction Blog

Posted April 11th, 2022 in construction industry, contracts, debts, insolvency, news by tracey

‘The case of Levi Solicitors LLP v Wilson and another considered the impact of contractor insolvency on debts owed to an employer under a JCT contract.
Significantly, the court helpfully clarified how the payment regime under JCT contracts operated in the context of insolvency. This blog takes a closer look at the case.’

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Practical Law: Construction Blog, 6th April 2022

Source: constructionblog.practicallaw.com

Farrar Out – Local Government Lawyer

‘Clare Mendelle and James Goldthorpe discuss how the insolvency of Farrar Construction leads to clarity from the Courts on dealing with an insolvent contractor under JCT.’

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Local Government Lawyer, 11th March 2022

Source: www.localgovernmentlawyer.co.uk

JCT insolvency ruling: time limit on termination not condition precedent – OUT-LAW.com

Posted March 7th, 2022 in company law, construction industry, contracts, debts, insolvency, news, time limits by tracey

‘An English High Court ruling in an insolvency case concerning a Joint Contracts Tribunal (JCT) Minor Works contract (2011) could apply to other standard form contracts in the same suite, a legal expert has said.’

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OUT-LAW.com, 4th March 2022

Source: www.pinsentmasons.com

Adjudication and Insolvency; Enforcement Proceedings in the post-Bresco Landscape – Local Government Lawyer

Posted November 15th, 2021 in appeals, dispute resolution, enforcement, insolvency, news by tracey

‘Clare Mendelle and Sarah Wertheim take a look at guidance provided by the Court of Appeal regarding security arrangements for insolvent claimants in the post-Bresco landscape.’

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Local Government Lawyer, 12th November 2021

Source: www.localgovernmentlawyer.co.uk

Bankruptcy Petitions – Petitioner Substitution r.10.27 and Change of Carriage r.10.29 – 33 Bedford Row

Posted November 3rd, 2021 in bankruptcy, chambers articles, debts, insolvency, news by sally

‘In England and Wales, there should only be one bankruptcy petition against a debtor at any one time. As stated in Re Maud [2020] EWHC 1469 (also known as Edgeworth Capital (Luxembourg) Sarl v Maud)(‘Re Maud’), by Snowden J, at paragraph 98:

“Consistent with the principle that a bankruptcy petition is a class remedy, the legislation, rules and court practice are generally based upon the notion that there should only be one petition against a debtor at any one time.”‘

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33 Bedford Row, 14th October 2021

Source: www.33bedfordrow.co.uk

FCA wins appeal over action on Carillion collapse – Law Society’s Gazette

Posted November 1st, 2021 in appeals, company law, financial services ombudsman, insolvency, news by tracey

‘The Financial Conduct Authority does not need the permission of the insolvency court to take regulatory action against a company in liquidation, the High Court has ruled in a case concerning the “spectacular collapse” of construction giant Carillion.’

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Law Society's Gazette, 29th October 2021

Source: www.lawgazette.co.uk

Research Briefing: Bankruptcy – House of Commons Library

Posted October 29th, 2021 in bankruptcy, insolvency, news, parliament by tracey

‘This Commons briefing paper provides a outline of bankruptcy procedures in England and Wales.’

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House of Commons Library , 27th October 2021

Source: commonslibrary.parliament.uk

Going for broke: Court of Appeal decides on insolvent party enforcement of adjudication awards – Practical Law: Construction Blog

Posted October 8th, 2021 in appeals, enforcement, insolvency, news by tracey

‘The Court of Appeal has handed down judgment in John Doyle Contractors Ltd v Erith Contractors Ltd. It is one of the first cases following the Supreme Court’s decision in Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd to test the courts’ willingness to allow insolvent parties to enforce adjudicators’ awards.’

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Practical Law: Construction Blog, 7th October 2021

Source: constructionblog.practicallaw.com

Giving evidence “not a game”, judge tells expert witness – Legal Futures

Posted September 28th, 2021 in accounts, company law, expert witnesses, insolvency, news by sally

‘An expert witness has apologised to the High Court after being told by a judge not to treat giving evidence in court “as a game”.’

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Legal Futures, 28th September 2021

Source: www.legalfutures.co.uk

Patisserie Valerie auditors fined £2.3m over ‘serious lack of competence’ – The Guardian

Posted September 27th, 2021 in accountants, auditors, fines, insolvency, news by sally

‘The auditor of Patisserie Valerie has been fined £2.3m and accused of a “serious lack of competence” over its role in the accounting scandal that led to the collapse of the cafe chain.’

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The Guardian, 27th September 2021

Source: www.theguardian.com