The modernisation of the Scottish Insolvency Rules has been eagerly awaited for some time. In April 2017, England & Wales will see the newly transformed insolvency legislation take full effect with the introduction of the Insolvency (England and Wales) Rules 2016. These new rules do not, however, impact on Scotland.

On 1st April 2016, the exemption for insolvency litigation from the changes brought about by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO), was withdrawn. Prior to this, an Insolvency Practitioner (IP) could pursue action against a “rogue” director or debtor, on behalf of the creditors of an insolvent business/individual, by instructing a solicitor on a Conditional Fee Agreement (CFA), and protect themselves against adverse costs by taking out After The Event insurance (ATE).

Key Points

• Reaffirms the importance of considering whether an applicant’s position would be improved by the making a vesting order

• Useful guidance on the extent of the court’s powers when granting a vesting order.

The Facts

Trustees’ Application

Trustees in bankruptcy issued an application for a declaration that a property owned by a company (the Property) was in fact owned by the bankrupt. The trustees contended that the Property had been bought from the sale proceeds of a property owned by the bankrupt’s father, but expressly held on trust for the bankrupt (the Trust Property).

The Facts

In an important Court of Appeal (CoA) decision handed down on 1 March 2017, the CoA has clarified the position for banks, lenders and insolvency practitioners regarding realisation of assets after certificates of completion have been issued in individual voluntary arrangements (IVAs).

The decision in Green -v- Wright was handed down in the Court of Appeal on 1 March 2017 and seeks to address the following issues:

• Whether a trust created in an individual voluntary agreement (IVA) terminates on completion.
• What is the definition of a ‘creditor’ for the purposes of an IVA?
• What is the effect of a certificate of completion?

Does a trust terminate?

The Ministry of Justice has recently published its review of the introduction of Employment Tribunal (‘ET’) fees. The fees were first introduced 2013 and many groups have raised concerns that they are a potentially serious barrier to bringing claims in the ET, particularly for less well off workers and those who have just lost their jobs.

HENRY GEORGE DICKINSON (Claimant) v (1) NAL REALISATIONS (STAFFORDSHIRE) LTD (2) KEVIN JOHN HELLARD & GERALD KRASNER (JOINT LIQUIDATORS OF THE FIRST DEFENDANT) (Defendants) & JUDITH YAP DICKINSON (Third Party) & ROBERT WILLIAMSON (Fourth Party) [2017] EWHC 28 (Ch)

Norton Aluminium Limited ("the Company") went into administration in August 2012 when it received a draft judgment in favour of local residents in a claim for nuisance, which resulted in substantial damages being award and likely legal costs.

'Close of business' is a term many people use in their day to day working life without much thought. But what does it actually mean and should the term be used in contractual documentation?

Agreeing to get something done by 'close of business' is a phrase often used when flexibility is required as to the time a task will be completed. It makes it clear the task will be done that day, but not by a particular time. However, what does the term mean when it is included in a contract?

You will have previously seen a landlord's consent is usually required to enable a pharmacist to assign or sell their lease to a third party.

It is usual for the landlord's consent to be specified not to be unreasonably withheld or delayed.

On a lease assignment a landlord will want to ensure that the tenant is of sufficient financial strength to be able to comply with the lease covenants (including payment of the rent).