Unregistered and time-barred foreign judgments can found the basis of insolvency proceedings in England

The English High Court has ruled that unregistered and time-barred foreign judgments can found the basis of insolvency proceedings in England.

The threat of insolvency proceedings can be a strong form of leverage to obtain a successful outcome on enforcement of a judgment debt, as judgment debtors will often pay up when faced with the prospect of being found insolvent.

Foreign money judgments

前情回顾

2024年3月30日，湖南省法学会知识产权法学研究会和知产财经在长沙联合举办“知识产权恶意诉讼的司法规制”研讨会，共同探讨和研究企业遭遇的知识产权恶意诉讼困境及解决之道，以期为行业良性有序发展贡献力量。会上，万慧达知识产权合伙人明星楠围绕“打击恶意诉讼需关注为祸之源”话题进行主题演讲，知产财经对其主讲内容进行了整理，以飨读者。

讲稿分享

To prevent landlords under long-term real property leases from reaping a windfall for future rent claims at the expense of other creditors, the Bankruptcy Code caps the amount of a landlord's claim against a debtor-tenant for damages "resulting from the termination" of a real property lease.

In a much-anticipated decision, the United States Court of Appeals for the Third Circuit recently held that unsecured noteholders’ claims against a debtor for certain “Applicable Premiums” were the “economic equivalent” to unmatured interest and, therefore, not recoverable under section 502(b)(2) of the Bankruptcy Code.

The Technology and Construction Court recently delivered helpful judicial guidance on when an insured’s cause of action under an the NHBC ‘Buildmark Choice’ policy, providing cover for contractor insolvency before practical completion arises.

Executive Summary

The latest amendment to the Czech Insolvency Act applies a shorter debt discharge period to both entrepreneurs and non-entrepreneurial individuals.

Background

The Czech Parliament has finally approved an amendment to the Czech Insolvency Act, reducing the debt discharge period from five to three years, in line with EU Directive 2019/1023. A key point of contention that delayed the amendment was whether to apply this shortened period not only to entrepreneurs but also to non-entrepreneurial individuals, extending beyond the EU’s minimum requirements.

Key takeaways

On September 12, 2024, the United States Court of Appeals for the Eighth Circuit reversed a trial court decision that had rejected a bank’s assertion of the in pari delicto defense to aiding and abetting claims brought by the bankruptcy trustee for a debtor that had allegedly perpetrated a Ponzi scheme. Kelley v. BMO Harris Bank Nat’l Ass’n, 2024 WL 4158179 (8th Cir. Sept. 12, 2024).

Manolete Partners Plc, an insolvency litigation finance company, has successfully claimed against the former director of Just Recruit Group Ltd (Just Recruit) and awarded £918,590. The Insolvency and Companies Court of the High Court found that the director of Just Recruit, Norman Freed, had breached his directorial duties to the company during the business's financial collapse.

Background