Monthly Update - February 2014

Monthly Update - February 2014

Welcome to the Restructuring & Insolvency team's round-up of recent case law, legislation, news and opinions for February 2014.

As spring finally arrives and we say goodbye to the rain (we hope), February suddenly seemed like a busy month in the insolvency world. There were a number of judgments handed down during the month, including a well received decision from the Court of Appeal in the Game administration which will inevitably spawn hundreds of articles.  Read our practical guide to what the Game appeal means for administrators and landlords. Meanwhile, insolvency practitioners were concerned by the new consultation on regulation and fees: could this spell the end of charging by the hour? And just what has the European Parliament been proposing on the EC regulation on Insolvency that has caused such concern? Find out more below.

Cases

Below is a round-up of some of the key cases reported in February.

Game appeal - the result is in (Pillar Denton Ltd v Jervis) [2014] EWCA Civ 180, [2014] All ER (D) 212 (Feb)

The Court of Appeal returned to the 'pay for what you use' principle in its decision in the Game appeal handed down on 24 February 2014. In a leading judgment by Lord Justice Lewison, the Court of Appeal decided that an officeholder (be it an administrator or liquidator) must make payments at the rate of the rent for the duration of any period during which he retains possession of the demised property for the benefit of the administration or liquidation (as the case may be). The rent is to be treated as accruing from day-to-day and is payable as an expense of the administration or liquidation.

The decision, which overruled both Goldacre (Offices) Ltd v Nortel Networks UK Ltd (in administration)  [2009] EWHC 3389, [2010] All ER (D) 54 (Jan) and Leisure (Norwich) II Ltd v Luminar Lava Ignite Ltd (in admin) [2012] EWHC 951 (Ch), [2012] All ER (D) 165 (May), applied the salvage principle (an equitable

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About the author:
Eleanor qualified in 1998 into the insolvency team at ASB law. She became a partner in 2005, and went on to head up the Recovery & Insolvency team. Whilst traditionally specialising mainly in contentious corporate insolvency matters, in recent years she has moved into the non contentious arena, in particular specialising in company administrations.