Legal News

Supreme Court confirms creditor duty exists but narrows its application (BTI 2014 LLC v Sequana SA)

Published on: 07 December 2022

Table of contents

  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Issue 1: The existence issue
  • Issue 2: The trigger issue
  • Issue 3: The weighting issue
  • Case details

Article summary

Pensions analysis: In a seminal judgment the Supreme Court has confirmed the existence of ‘the creditor duty’ and definitively laid out when it arises. The justices also gave important guidance on the weight to be attributed to the duty. The case has important practical implications for the analysis of a director’s duty to a company during its descent into insolvency. Written by Helen Pugh, barrister at Outer Temple Chambers.

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