Category: insolvency

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

Posted October 2nd, 2020 in administrators, company law, construction industry, dispute resolution, enforcement, insolvency, news by tracey

‘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

Posted August 14th, 2020 in administrators, appeals, chambers articles, contract of employment, coronavirus, employment, insolvency, news, remuneration by sally

‘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

Posted July 8th, 2020 in bills, chambers articles, coronavirus, forfeiture, insolvency, landlord & tenant, local government, news, planning, rent, repossession by sally

‘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

Posted July 8th, 2020 in chambers articles, company law, contracts, coronavirus, insolvency, news, pre-action conduct by sally

‘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

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

Posted July 1st, 2020 in appeals, chambers articles, company law, contracts, damages, debts, dispute resolution, insolvency, jurisdiction, news, Supreme Court by sally

‘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

New Acts – legislation.gov.uk

Posted June 30th, 2020 in divorce, insolvency, legislation, sport by tracey

Divorce, Dissolution and Separation Act 2020

Birmingham Commonwealth Games Act 2020

Corporate Insolvency and Governance Act 2020

Source: www.legislation.gov.uk

A double victory for members of schemes in the PPF – Wilberforce Chamber

Posted June 26th, 2020 in chambers articles, EC law, employment, insolvency, judicial review, news, pensions by sally

‘The judgment of Mr Justice Lewis in Hughes and others v Board of the Pension Protection Fund [2020] EWHC 1598 (Admin), handed down on 22 June 2020, is of considerable importance for members of defined benefit schemes of insolvent employers. Thomas Seymour along with a counsel team from Blackstone Chambers (Tom de la Mare QC and Iain Steele), instructed by Farrers, acted for the British Airline Pilots Association (BALPA) representing pilots who were members of the Monarch and BMI Schemes, who brought proceedings for judicial review along with the claimants of other schemes. The proceedings, brought against the Pension Protection Fund (“PPF”) with the Department of Work and Pensions (“DWP”) as an interested party, were heard at a five-day remote hearing in the Administrative Court in May.’

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Wilberforce Chambers, 24th June 2020

Source: www.wilberforce.co.uk

The Supreme Court sanctions the use of adjudication in the insolvency context: Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd [2020] UKSC 25 – 3 Hare Court

Posted June 23rd, 2020 in construction industry, contracts, dispute resolution, insolvency, news, set-off by sally

‘The Supreme Court has given judgment in what is being hailed as a landmark case in the construction and insolvency spheres. The decision has not only eliminated any doubt that there is jurisdiction for an insolvent company to adjudicate against a respondent with a potential cross-claim, but it has also endorsed the use of adjudication as a helpful tool for liquidators.’

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3 Hare Court, 22nd June 2020

Source: www.3harecourt.com

Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (Electrical) Ltd [2020] USC 25, or ‘‘kicking the door wide open’’ – 3PB

Posted June 23rd, 2020 in construction industry, contracts, dispute resolution, insolvency, news, set-off by sally

‘Lord Justice Coulson’s judgment included the proposition that an insolvent Company could only adjudicate a dispute with a creditor in circumstances of mutual debts in “exceptional circumstances”. Subsequent caselaw has explored the extent of these “exceptional circumstances”.’

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3PB, 18th June 2020

Source: www.3pb.co.uk

COVID-19 Topics: The Basics of Individual Insolvency – Thomas More Chambers

Posted June 12th, 2020 in bankruptcy, chambers articles, coronavirus, debts, insolvency, news by sally

‘Beyond the medical and physical toll that Covid-19 is taking on sufferers and their families, the economic crisis with lockdown is also expected to lead to a surge in corporate and individual insolvencies. Individuals in particular are likely to be unfamiliar with their options when facing insolvency and with the procedures that aim to balance the twin goals of granting individuals relief from their debt whilst fairly distributing the individual’s assets to creditors.’

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Thomas More Chambers, 29th May 2020

Source: www.thomasmore.co.uk

Insolvency in the English Football League: impact on players and staff – Littleton Chambers

Posted June 11th, 2020 in contract of employment, coronavirus, debts, insolvency, news, remuneration, sport by sally

‘In relation to the EFL, there have been dire warnings that in the absence of a substantially increased contribution from the Premier League, up to 60 clubs could go out of business.’

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Littleton Chambers, 2nd June 2020

Source: littletonchambers.com

Commercial Court dislikes pre-action disclosure in prof neg claims: even in mega-auditor’s negligence action – Hailsham Chambers

Posted June 10th, 2020 in auditors, chambers articles, Commercial Court, disclosure, insolvency, liquidators, negligence, news, pre-action conduct, professional conduct by sally

‘In Carillion v KPMG, the liquidators of this once substantial company sought pre-action disclosure from its former auditors. They intend to bring professional negligence proceedings for not detecting that the financial statements were unreliable. The Commercial Court refused the application. One might think that given auditors’ negligence claims in large part turn on professional judgment as to the audit procedures performed, the evidence obtained and the conclusions drawn, clear sight of the materials produced and relied on by the auditors would enable better focussed pleadings. Nonetheless the Commercial Court refused the application (which had admittedly spun into a substantial hearing with apparently more than £500,000 costs on each side). It pointed out that generally such applications were unlikely to succeed in Commercial Court cases and on the facts was not appropriate. The Judge seems to have been most impressed by the fact that Carillion had been able to articulate a detailed case in negligence already, rendering pre-action disclosure perhaps redundant and likely to be duplicated when it came to conventional disclosure.’

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Hailsham Chambers, June 2020

Source: www.hailshamchambers.com

COVID-19 and Insolvency Law: Key Implications of th – 3 Hare Court

Posted June 4th, 2020 in bills, chambers articles, coronavirus, insolvency, news by sally

‘The COVID-19 pandemic has caused unprecedented disruption to the economy and to businesses, many of whom are now facing significant financial difficulty. The Government presented the Corporate Insolvency and Governance Bill to Parliament on 20 May 2020 (“the Bill”). The Bill includes several provisions designed to guard against a deluge of insolvencies during this period and, if enacted, will operate retrospectively.’

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3 Hare Court, 2nd June 2020

Source: www.3harecourt.com