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Protected Trust Deeds and PPI: Part Three

The question of who is entitled to payment of compensation for PPI where a debtor has been discharged from his/her Protected Trust Deed (PTD) had given rise to conflicting judicial decisions in Scotland. In our previous article, we highlighted the uncertainty created following the decision of Sheriff Reid in the case ofDonnelly v The Royal Bank of Scotland (Donnelly) and the decision of Lord Jones in Dooneen Limited, t/a Mcginnes Associates and Douglas Davidson v David Mond (Dooneen).

United Kingdom, Scotland, Banking, Insolvency & Restructuring, Litigation, Shepherd and Wedderburn LLP, The Royal Bank of Scotland
Protected trust deeds and PPI: Part Two

The question of who is entitled to payment of compensation for PPI where a debtor has been discharged from his/her Protected Trust Deed (PTD) has given rise to conflicting judicial decisions in Scotland. In our previous article, we highlighted the uncertainty created following the decision of Sheriff Reid in the case of Donnelly v The Royal Bank of Scotland and the decision of Lord Jones in Dooneen Limited, t/a Mcginnes Associates and Douglas Davidson v David Mond.

United Kingdom, Scotland, Banking, Insolvency & Restructuring, Litigation, Shepherd and Wedderburn LLP, Debtor, Deed
Protected Trust Deeds and PPI Compensation - Opposing judgments create uncertainty in Scotland

It is estimated that there were almost 40,000 Protected Trust Deeds (“PTD”) entered into between 2005 and 2010. Similar to an IVA, a PTD is a voluntary arrangement in which the debtor conveys his estate to an insolvency practitioner (“the Trustee”) to be held on trust for the benefit of creditors. A large number of those who enter into a PTD do so because of borrowing that they have incurred on credit cards.

United Kingdom, Scotland, Banking, Insolvency & Restructuring, Litigation, Shepherd and Wedderburn LLP, Payment protection insurance
Dismissal by administrator was automatically unfair, even though no transferee had been identified

The EAT has confirmed that it is not necessary for the eventual transferee to have been identified in order for an employee, dismissed in the run up to a transfer, to claim automatic unfair dismissal by reason of a relevant transfer under TUPE (Spaceright Europe Ltd v Baillavoine & another).

United Kingdom, Employment & Labor, Insolvency & Restructuring, Litigation, Shepherd and Wedderburn LLP, Discrimination, Employment tribunal, Unfair dismissal, Precondition, Transfer of Undertakings (Protection of Employment) Regulations 2006 (UK), Chief executive officer, Employment Appeal Tribunal
New EAT case on insolvency provisions in TUPE - Oakland v Wellswood (Yorkshire) Limited

This recent case in the Employment Appeal Tribunal (EAT) is one of the first to examine how the insolvency provisions in the Transfer of Undertakings (Protection of Employment) Regulations 2006 (TUPE) should apply and, in particular, the circumstances in which employment liabilities passed under TUPE to the buyer of the assets of an insolvent company.

Facts

This case involved a "pre-pack" administration.

United Kingdom, Employment & Labor, Insolvency & Restructuring, Litigation, Shepherd and Wedderburn LLP, Bankruptcy, Shareholder, Marketing, Liability (financial accounting), Liquidation, Unfair dismissal, Precondition, Department for Business, Enterprise and Regulatory Reform, Transfer of Undertakings (Protection of Employment) Regulations 2006 (UK), Employment Appeal Tribunal