Permission to bring a claim against a company in liquidation

Permission to bring a claim against a company in liquidation
In what circumstances will the court grant leave to issue CPR 8 declaratory proceedings against an LLP in liquidation? The case of Fennell v Halliwells LLP [2013] EWHC 2837 (Ch), [2013] All ER (D) 161 (Sep) had a look at this.

 

Mr Justice Strauss QC (sitting as a deputy judge) gave the applicant leave to issue CPR 8 declaratory proceedings against the defendant LLP in liquidation. The claimant sought permission to bring a claim against the defendant in liquidation for a declaration that the claim that the defendant had issued against him had been released by the defendant andcould not be brought. The defendant's liquidators contended that the court should not interfere with their strategy of seeking to negotiate andmediate all claims. The Companies Court, in allowing the application, decided that the liquidators' opposition to the application was unjustifiable, given the failure of negotiations andthat case management considerations favoured the grant of permission.

What happened in the case?

The application concerns Halliwells LLP (the LLP), a firm of solicitors that entered administration on 20 July 2010 andwent into compulsory liquidation on 12 January 2012. The applicant was a former partner of the LLP who left (with eight other former members) before the LLP entered administration. The principal assets of the LLP were claims or possible claims against former members, including a claim against the applicant that the liquidators had asserted in a letter to the applicant amounted to £125,000. The liquidators had taken no further steps to pursue the sums andthe applicant sought the court's permission under section 130(2) of the theInsolvency Act 1986 (IA 1986) to bring a Civil Procedure Rules 1998, SI

Related Articles:
Latest Articles:

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login