There have been a string of high-profile celebrity bankruptcies over the decades, and most recently, Katie Price. A common theme among these celebrities, many of whom were former contestants on the ITV hit show “I’m a Celebrity,” is that they were bankrupted by HMRC for unpaid taxes.
On 13thFebruary 2024, the Insolvency Service (IS) released their latest monthly enforcement stats in relation to the directors’ disqualifications. The figures, whilst not surprising highlight some interesting points to note:
The Supreme Court judgment in the case of R (on the application of Palmer) (Appellant) v Northern Derbyshire Magistrates Court and another (Respondents) was handed down on 1 November 2023.
In the case of Sian Participation Corp (In Liquidation) v Halimeda International Ltd (on appeal from the BVI), the Privy Council has found that Salford Estates (No.2) Limited v Altomart Limited was incorrectly decided.
This case is not only important for BVI lawyers, as the Privy Council has directed pursuant to Willers v Joyce (No 2) [2016] UKSC 44 that the decision in the present case in respect of Salford Estates now represents the law of England and Wales.
Background
In an eagerly-awaited and significant decision, the Supreme Court, in R (on the application of PACCAR Inc and others) v Competition Appeal Tribunal and others [2023] UKSC 28 (“PACCAR”), held, on 26 July 2023, that litigation funding agreements (“LFAs”) under which a litigation funder receives a percentage of any damages recovered by the claimant are damages-based agreements (“DBAs”) within the meaning of section 58AA of the Courts and Legal Services Act 190 (“CLSA”).
“What's in a name? That which we call a rose by any other name would smell just as sweet.” Romeo & Juliet – William Shakespeare
Company names and brand names, which may or may not be the same, along with the goodwill attributable to that name, is often a valuable company asset. However, even well-established brands are not immune to economic pressures, and you only have to take a walk down your local high street to witness the disappearance of many household names.
This quarterly civil fraud update provides a summary of reported decisions handed down in the courts of England and Wales in the period of January - March 2023.
BRIBERY
It is five years since the tragic Grenfell disaster but defective cladding/dangerous living conditions and fire safety are still very much hot news. But, you may be asking, why is this relevant to insolvency practitioners?
As winter draws near, the days grow shorter, temperatures dip, and businesses will be turning on the lights longer and the heating up higher; all leading to higher energy bills. But, with continuing volatility in the energy market, how many businesses can afford to do so and will energy bills sound their death knell?
While testators generally have freedom to decide how to dispose of their assets in England and Wales, there are limits to this freedom, including where a beneficiary of the estate is made bankrupt. If the testator passes away during the course of the beneficiary’s bankruptcy, the legacy will usually pass to the trustee in bankruptcy for the benefit of creditors instead of to the beneficiary.