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ARTICLE · 21 NOVEMBER 2017

Legal Privilege - Human Right Or Fraudster's Shield?

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The recent decisions in Avonwick Holdings Ltd and others v Shlosberg and Leeds v Lemos have restricted the ability of trustees in bankruptcy to use privileged documents belonging to the bankrupt.

United KingdomLitigation, Mediation & Arbitration
Alex Jay
Alex Jay
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The recent decisions in Avonwick Holdings Ltd and others v Shlosberg and Leeds v Lemos have restricted the ability of trustees in bankruptcy to use privileged documents belonging to the bankrupt. What do these rulings mean for trustees?

The Trustee in Bankruptcy's purpose and powers

A Trustee in Bankruptcy (TIB) is appointed when a bankruptcy order is made against an insolvent individual. The TIB's statutory purpose is to realise the bankrupt's estate for the benefit of the bankrupt's creditors. The Insolvency Act 1986 and Insolvency Rules 2016 contain various powers to support the TIB in fulfilling this function, including the following:

  • The bankrupt's estate vests automatically in the TIB upon appointment.

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