Introduction

The UNCITRAL Model Law on the Recognition and Enforcement of Insolvency Related Judgments (‘the New Model Law’) is intended to fill the gaps that currently exist in cross-border conventions as they apply to the recognition and enforcement of judgments in insolvency proceedings.

Khandanpour v Chambers [2019] EWCA Civ 570

Should relief from sanctions be granted where a judgment debtor purports to appropriate monies paid to satisfying a procedural condition for setting aside a default costs order, but the creditor purports to appropriate the monies instead to the judgment debt?

Background

How deep is the “pool of facts in which it is permissible to fish for the basis of the new cause of action” if a party wishes to benefit from the ‘relation back’ doctrine when calculating limitation periods? The Court of Appeal gives guidance on the meaning of “the same or substantially the same facts” for the purpose of CPR r 17.4(2).

With the Court of Appeal’s decision in Bresco Electrical Services Ltd v Michael J Lonsdale (Electrical) Ltd just a few weeks old, it is hardly surprising that people are looking again at the relationship between insolvency law and adjudication, noting that in cases of liquidation where parties have a cross claim, construction law defers to insolvency law.

This was clearly illustrated in Gregg Nowak Ltd v CSS Electrical Distributors Ltd, which came before HHJ Bailey earlier this month.

Background

This was a conjoined appeal alongside Bresco v Lonsdale. In this case, Cannon and Primus had already participated in an adjudication, with the decision of the adjudicator favouring Primus. Primus would later enter into a Company Voluntary Arrangement.

The CVA was made on the basis that, although Primus was insolvent at the time, it would be able to satisfy its creditors if it were able to recover from Cannon and other third parties through litigation and adjudication. This was preferable to liquidation.

If your company has gone into liquidation and you are in the process of setting up a new business, you may want to use the same or a similar company name. However, if you either act as director or are involved in the management of the new company with the same or similar name as the insolvent company, you run the risk of both civil and criminal liability if you don’t comply with the restrictions under the Insolvency Act 1986.

Insolvency Set-Off and Construction Contract Adjudications in light of Bresco Electrical Services Ltd (in liquidation) v Michael J Lonsdale (electrical) Ltd; Cannon Corporate Ltd v Primus Build Ltd [2019] EWCA Civ 27

This case concerned both the appeal in Bresco v Lonsdale and Cannon Corporate v Primus Build. The present case comment is only concerned with the former.

Background

Bresco appealed to set aside the order of an injunction from Fraser J. That injunction prevented the continuation of an adjudication in which Bresco and Lonsdale (in liquidation) sought sums from each other in claims and cross-claims.

Once again, the statistics show an increase in corporate and personal insolvencies nationally, with a reported 16,090 corporate insolvencies and 115,299 personal insolvencies in the UK in 2018. While the media is focusing on how this reflects on the economy and the government, insolvency specialist Tony Sampson looks at what it means for the millions of creditors involved in those insolvencies. In short, what will those creditors actually receive?

Introduction

The recent decision of Andrew Burrows QC, sitting as a Judge of the High Court, in Palliser Limited v Fate Limited (In Liquidation) [2019] EWHC 43 (QB), is a useful reminder of the difficulties that can arise where one party (here a tenant) relies on another (its landlord) to take out insurance.

The Facts

In 2010, a fire started at the ground floor restaurant owned and operated by a company called Fate Limited (“Fate”). It was not in dispute that the fire was caused by Fate’s negligence.