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 by the administrators to Involegal is arguably valid under the insolvency exception to the rule against champerty, and Involegal has a realistic prospect of establishing 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 were causative of Transform's administration and loss. The ATE insurance provides sufficient protection against adverse costs, and it is not just to order security for costs. Accordingly, the applications for summary judgment, strike out, and security for costs are dismissed.

Citation
[2020] EWHC 3402 (QB)
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, Summary Judgment, Security for Costs, Abuse of Process, Causation of Loss, ATE Insurance
Civil Procedure Professional Negligence Insolvency Assignment of Causes of Action Champerty and Maintenance Summary Judgment Security for Costs 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 champertous or otherwise invalid
  2. 2 Whether the claim should be struck out as an abuse of process
  3. 3 Whether the claimant has a real prospect of establishing causation and loss

Ratio Decidendi

The assignment by the administrators to Involegal is arguably valid under the insolvency exception to the rule against champerty, and Involegal has a realistic prospect of establishing 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 were causative of Transform's administration and loss. The ATE insurance provides sufficient protection against adverse costs, and it is not just to order security for costs. Accordingly, the applications for summary judgment, strike out, and security for costs are dismissed.

Court Disposition

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

Orders

  • Applications for summary judgment, strike out, and security for costs dismissed.
  • Parties to submit draft order and any consequential submissions within 14 days of hand down.