Q&As

If an insured company against which an adjudication award has been obtained is dissolved, must that company be restored to the register to pursue the action even though it is subject to an enforced award and liability has therefore crystallised? If so, should proceedings be brought in the client's name or the name of the dissolved company?

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Published on LexisPSL on 20/12/2018

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • If an insured company against which an adjudication award has been obtained is dissolved, must that company be restored to the register to pursue the action even though it is subject to an enforced award and liability has therefore crystallised? If so, should proceedings be brought in the client's name or the name of the dissolved company?

The Third Parties (Rights Against Insurers) Act 1930 (TP(RAI)A 1930) was introduced to allow a third party to step into the shoes of the insolvent insured party in order to make a claim against the insurer. The rights of the insured were transferred to the third party, and the proceeds of the claim did not become part of the pot of money for distribution to all of the insolvent party's creditors. Insurers could not contract out of the legislation.

TP(RAI)A 1930 was repealed and replaced by the Third Parties (Rights against Insurers) Act 2010 (TP(RAI)A 2010), which came into force in 2016 as Third Parties (Rights against Insurers) Regulations 2016, SI 2016/570. TP(RAI)A 2010 will apply only if liability has been incurred on or after 1 August 2016 or if the defendant becomes insolvent in one of the ways specified by TP(RAI)A 2010 on or after 1 August 2016. If both events happen before that date, TP(RAI)A 1930 will still apply.

Under TP(RAI)A 1930, a claim coul

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