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GLOSSARY
Any sum spent or to be spent on behalf of a client
PRACTICE NOTES
This Practice Note considers the recovery of disbursements expended during proceedings. It explains what a disbursement is and then covers the court’s general approach to the recoverability of disbursements as well as specific issues that arise in relation to particular types of disbursement. For information on the recoverability of disbursements in cases that come within the extended fixed recoverable costs regime on or after 1 October 2023, see Practice Note: Fixed costs—disbursements (position on or after 1 October 2023). This Practice Note does not address issues that arise in relation to barristers’ fees. It is settled law that a barrister’s fees are disbursements, irrespective of whether the work could have been done by the instructing solicitor as set out by the Court of Appeal in Crane v Canons Leisure Centre (2007). For a detailed consideration of the principles governing the recoverability of counsels’ fees on assessment, see Practice Note: Counsel’s fees—costs recovery. What is a disbursement? Disbursements are, broadly speaking, legal costs other than solicitor’s profit costs: essentially, a disbursement is a one-off item of expenditure
GLOSSARY
Release of gaseous or liquid materials to the environment.
PRACTICE NOTES
This Practice Note summarises how the common law doctrine of frustration may operate to discharge an agreement and the legal consequences of a contract being frustrated, including issues of partial frustration, party at fault (self-induced frustration) and examples of types of frustrating event. See also Practice Notes: • Frustration event analysis—a practical guide • Frustration—key and illustrative decisions For guidance on drafting a notice asserting frustration of a contract, see Precedent: Contract frustration notice. Interest in the doctrine of frustration particularly came to the fore in light of world events such as the coronavirus (COVID-19) pandemic in 2020 and Russia’s invasion of Ukraine in 2022 and the attendant imposition of sanctions against Russian entities. The 2026 conflict in the Middle East and Iran’s effective closure of the Strait of Hormuz will likely result in similar interest in this area, see News Analysis: The Middle East conflict—key legal issues for commercial entities. Links to general guidance with regard to contractual relations and these world events is provided in the world events section below. Frustration is distinct
PRACTICE NOTES
THIS PRACTICE NOTE APPLIES TO REGISTERED OCCUPATIONAL PENSION SCHEMES IN WIND-UP (EXCEPT THOSE ENTERING THE PENSION PROTECTION FUND) A key aspect of the winding-up process as it relates to occupational pension schemes is the need to ensure that, as far as is possible, the process permits the discharge of the trustees of the relevant pension scheme from further responsibility in respect of the scheme and its assets and liabilities. There are a number of steps that trustees can take to achieve this. For information about ways to protect trustees from liability in an ongoing scheme, see Practice Note: Trustee liability and protection in pensions. Statutory discharge Where the pension scheme is being wound up and is a scheme to which s 73 of the Pensions Act 1995 (PA 1995) applies (eg a registered defined benefit occupational scheme), a statutory discharge may be available to the trustees pursuant to PA 1995, s 74 and the underlying Occupational Pension Schemes (Winding Up) Regulations 1996, SI 1996/3126 (the Winding-Up Regulations). In particular, PA
GLOSSARY
Upon his discharge from bankruptcy a bankrupt is released from all of his bankruptcy debts.
PRACTICE NOTES
At the heart of the bankruptcy, legislation is the concept of a bankrupt surrendering their estate for the benefit of creditors in return for protection from the claims of those creditors. The effect of discharge is set out in section 281 of the Insolvency Act 1986 (IA 1986). Discharge releases the bankrupt from all the bankruptcy debts. A bankruptcy debt includes any debt or liability to which the bankrupt is subject when the bankruptcy order is made or to which the bankrupt becomes subject after that date as a result of an obligation entered into before the bankruptcy order is made, as well as any interest on those debts. This may, for example, include any unsecured guarantees entered into by the bankrupt prior to the bankruptcy order being made, even where the principal debtor is not in default of its obligations. As discussed below, discharge does not however release the bankrupt from all liabilities. In addition, a number of disabilities imposed on undischarged bankrupts are lifted. Accordingly, after discharge, a bankrupt may, among other things,
NEWS
Restructuring& Insolvency analysis: This decision concerned whether the court should intervene to lift a bankrupt's suspension from discharge, in circumstances where the trustees of the bankrupt did not consider themselves able to certify the bankrupt had complied, because of past conduct which had resulted in conviction for bankruptcy offences. Boris Becker, the tennis player, sought the lifting of his suspension from discharge, being, in his own words, ‘incapable of doing more than I have done in terms of accounting for and delivering up assets’. Acknowledging that the question of non-compliance exists on a spectrum between being as deliberately non-cooperative as possible and broadly compliant, Chief Insolvency and Companies Court (ICC) Judge Briggs found that Mr Becker's recent conduct falls ‘on the right side of the line’ and that his past conduct should not be held against him indefinitely. Mr Becker's suspension was lifted and he has now received his discharge from bankruptcy. Written by Katie Farmer, partner at Trowers & Hamlins LLP.
PRACTICE NOTES
This Practice Note considers the discharge from liability of administrators, liquidators, provisional liquidators and trustees in bankruptcy (trustees) in respect of their conduct as office-holders. The purpose behind their discharge is to insulate them as upon vacation of office they will no longer retain the insolvent debtor’s assets in their hands out of which they are entitled to meet any liability properly incurred by them, so it is unfair to leave them on risk generally. Administrators When a person ceases to be the administrator of a company, they are discharged from liability in respect of any action of theirs as administrator. Their discharge takes effect: Event Time Provision On the death of the administrator On the filing of the notice of their death with the court Paragraph 98(2)(a) of Schedule B1 to the Insolvency Act 1986 (IA 1986) If the administrator was appointed out of court and has not made a statement under IA 1986, Sch B1, para 52(1)(b) that the company has insufficient property to enable a distribution to be made to unsecured
PRECEDENTS
We, [insert name of Lender/Security Agent], a company incorporated in [Scotland OR England and Wales] under the Companies Acts with Registered Number [insert company number] and having our Registered Office at [insert address] [in its capacity as [insert, eg security trustee/agent]
PRECEDENTS
FOR THE PURPOSES OF THE LEGAL WRITINGS (COUNTERPARTS AND DELIVERY) (SCOTLAND) ACT 2015, THIS DISCHARGE IS DELIVERED ON [insert date] 20[insert year] DISCHARGE by Parties 1 [insert name of Lender/Security Agent], a company incorporated in [Scotland OR England and Wales] under the Companies Acts with Registered Number [insert company number] and having our Registered Office at [insert address] [[[in its capacity as [security trustee/agent] for the Secured Parties under and in terms of [describe facility agreement or include definition]]]] (the Lender/Security Agent); in favour of 2 [insert name of Chargor] a company incorporated in [Scotland OR England and Wales] with registered number [insert company number] whose registered office is at [insert address] (the Chargor). Recitals (A) In accordance with a [bond and] floating charge dated [insert date] (the Floating Charge), the Chargor charged the Charged Assets (see below for definitions) in favour of the Lender/Security Agent. (B) The Chargor has requested the Lender/Security Agent discharge and release the security constituted by the Floating Charge and the Lender/Security Agent has agreed to do so. The parties agree: 1 Definitions and interpretation 1.1 Unless otherwise
PRECEDENTS
I, [person disclaiming legal rights], residing at [ ] have had notified and explained to me the effect of the provisions of the Will of my late [mother OR father OR grandmother OR grandfather], [name of deceased], dated [date of