Hugh James Involegal LLP v Berrymans Lace Mawer LLP & Anor [2020] EWHC 3402 (QB) (15 December 2020)

Hugh James Involegal LLP v Berrymans Lace Mawer LLP & Anor [2020] EWHC 3402 (QB) (15 December 2020)

The assignment of Transform's cause of action to Involegal is not invalid for champerty or maintenance as it falls within the insolvency exception and/or Involegal has a sufficient commercial interest. The claim is not an abuse of process as it is a distinct cause of action for professional negligence. There is a realistic prospect that the uninsured claims caused Transform's administration and loss. The ATE insurance provides adequate security for costs, and it is not just to order security or payment into court. All defendants' applications are dismissed.

Citation
[2020] EWHC 3402
Parties
Claimant: Hugh James Involegal LLP (as assignee of Transform Medical Group CS Limited); First Defendant: Berrymans Lace Mawer LLP; Second Defendant: Mr Jonathan Waite QC
Jurisdiction
England and Wales
Judgment Date
15 December 2020
Procedural Posture
Civil (professional Negligence) / Interlocutory Applications for Summary Judgment, Strike Out, and Security for Costs
Outcome
Defendants' applications for summary judgment, strike out, and security for costs dismissed.
Legal Topics
Assignment of Causes of Action, Champerty and Maintenance, Security for Costs, Summary Judgment, Abuse of Process, Causation of Loss, ATE Insurance
Civil Procedure Professional Negligence Insolvency Assignment of Causes of Action Champerty and Maintenance Security for Costs Summary Judgment Abuse of Process +2 more

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Parties

Hugh James Involegal LLP (as assignee of Transform Medical Group CS Limited)

Claimant

Berrymans Lace Mawer LLP

First Defendant

Mr Jonathan Waite QC

Second Defendant

Procedural Posture

Civil (professional Negligence) / Interlocutory Applications for Summary Judgment, Strike Out, and Security for Costs

Legal Issues

  1. 1 Whether the assignment of Transform's cause of action to Involegal is invalid for champerty or maintenance
  2. 2 Whether the claim should be struck out as an abuse of process
  3. 3 Whether there is a real prospect of establishing causation and loss against the defendants

Ratio Decidendi

The assignment of Transform's cause of action to Involegal is not invalid for champerty or maintenance as it falls within the insolvency exception and/or Involegal has a sufficient commercial interest. The claim is not an abuse of process as it is a distinct cause of action for professional negligence. There is a realistic prospect that the uninsured claims caused Transform's administration and loss. The ATE insurance provides adequate security for costs, and it is not just to order security or payment into court. All defendants' applications are dismissed.

Court Disposition

Defendants' applications for summary judgment, strike out, and security for costs dismissed.

Orders

  • Applications for summary judgment dismissed
  • Application to strike out claim as abuse of process dismissed