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ARTICLE · 27 OCTOBER 2017

Insolvency Litigation: Recent Cases And Issues In October 2017

Gowling WLG
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In our update this month we take a look at a case in which a non-party costs order was made against a major shareholder in the insolvent claimant company.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Alex Jay
Alex Jay
Kanika Kitchlu-Connolly
Kanika Kitchlu-Connolly
Ian Weatherall
Ian Weatherall
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In our update this month we take a look at a case in which a non-party costs order was made against a major shareholder in the insolvent claimant company. The court found that the shareholder was the real party to the litigation; it funded the litigation, it was exercising control over the litigation and it would have been the main beneficiary had the litigation succeeded. We cover this, and other issues affecting the insolvency and fraud industry:

Montpelier Business Reorganisation Ltd v Jones & Others (2017)

Background

The dispute concerned an Asset Purchase Agreement (APA) entered into between the claimant (Montpelier) and the first to fifth defendants. Under the APA, Montpelier agreed to purchase the business and assets of the first and second defendants. Montpelier subsequently sued for breach of contract. It asserted that it was not required to make the final payment of £250,000 due under the APA and claimed damages in excess of £1 million.

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