In Graves v Capital Home Loans Ltd [2014] EWCA Civ 1297, it was held that the appointment of Law of Property Act Receivers by a mortgagee because the borrower lacked the mental capacity to manage his financial affairs was valid even if the borrower was mentally fit by the time of the appointment. It was further held that the treatment of the borrower by the lender in such circumstances did not give rise to an unfair relationship under ss 140A and 140B of the Consumer Credit Act 1974 (CCA 1974).

Background

In Spencer Day v Tiuta International Ltd and other [2014] EWCA Civ 1246, the Court held that a creditor who relies on subrogation is still a secured creditor, and therefore cannot be subject to a set off claim for unliquidated damages as per Natwest v Skelton (1993).

Background

On December 1, 2014, the Court of Appeal for Ontario (the “Court of Appeal”) released its decision, written for the Court of Appeal by Madam Justice Pepall, in Bank of Nova Scotia v. Diemer, 2014 ONCA 851 (“Diemer”). The Court of Appeal dismissed the court-appointed receiver’s (the “Receiver”) appeal of the order of Justice Goodman, which, among other things, reduced the fees of counsel (“Counsel”) to the Receiver.

In Credit and Mercantile Plc v (1) Kaymuu Ltd (2) Kevin Michael Wishart and (3) Ian Mark Defty (as Trustee in Bankruptcy for Mr Sami Muduroglu) [2014] EWHC 1746, the court held that whilst a beneficial interest was created in favour of Mr Wishart, it did not take priority to the claimant’s charge.

Background

Bankruptcy and insolvency professionals should take note of two recent Ontario Superior Court decisions that put professional fees in the spotlight.  TNG  Acquisition Inc. (Re), 2014 ONSC 2754 [Commercial List] (“TNG Acquisition”) and Bank of Nova Scotia v. Diemer, 2014 ONSC 365 (“Diemer”), saw Brown J. and Goodman J., respectively, reduce fees for court-appointed officers and their legal counsel on the basis that the amounts sought were unreasonable in consideration of the work performed.

In its June 11, 2014 decision in Iona Contractors Ltd. (Re), 2014 ABQB 347 (“Iona Contractors”), the Court of Queen’s Bench of Alberta (the “Alberta  QB”)  held that the trust created by section 22  of  the  Builders’ Lien Act (Alberta) is not effective in the bankruptcy of a would-be trustee debtor. This result  is  consistent with, but reached completely independently of, the recent Ontario  Superior Court  of Justice  (Commercial List) decision in Royal Bank of Canada v. Atlas Block Co.

In his recent decision inRoyal Bank of Canada v.Atlas Block Co. Limited, 2014 ONSC 3062 (“Atlas Block”), Justice Penny of the Ontario Superior Court of Justice (Commercial List) held that trust claims pursuant to section 8 of the Construction Lien Act (Ontario) (the “CLA”) do not survive the bankruptcy of the would-be trustee debtor.

HR Consultancy

DURC: new system officially started

The new system of internal DURC (“Documento Unico di Regolarità Contributiva”), through which the INPS (“Istituto Nazionale della Previdenza Sociale”) ensures the regular payment of social security contributions by the employer, officially started. 

These days, in fact, the companies have started to receive by certified e-mail (PEC) an invitation to stabilize any irregularity within 15 days.

Fixed term employment contract: fines replace reinstatement

HR Colsultancy

JOBS ACT - Fixed term employment contract: potential fines for those companies with 20% or more of their employees on fixed term contracts

Current proposed amendments by the Jobs Act include (i) replacing the fine for conversion of fixed term contracts exceeding the 20% limit into open-ended contracts with a fine to be paid to the employee and (ii) the clarification of the reintroduction of basic training for apprentices. 

Global FDSI Briefing

Welcome to our latest quarterly briefing on legal developments across our global network. I hope you find the articles insightful and thought provoking. Highlights this quarter include recent developments in Italian derivatives case law, an overview of the amendments made to Spain’s insolvency regulation and the UK’s FCA issuing first warning notices against individuals.

If you have any questions or would like further information please do not hesitate to contact me, or one of our global key contacts.

[Matthew Allen]

Matthew Allen