- Change of position in preference claims (Re Peter Herbert Fowlds)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Restructuring & Insolvency analysis: A defendant argued that she should not have to restore a payment amounting to a preference under section 340 of the Insolvency Act 1986 (IA 1986) because she had changed her position in good faith since receiving the payment and because an order for restoration would be disproportionate. The court accepted that argument and held that a change of position is a factor which can validly be considered by the court when it is considering how to exercise its unfettered discretion under IA 1986, s 340. Written by Karl Anderson, barrister, at 4 Stone Buildings.
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