The Official Receiver v Shop Direct Finance Company Ltd [2023] EWCA Civ 367 (05 April 2023)

The Official Receiver v Shop Direct Finance Company Ltd [2023] EWCA Civ 367 (05 April 2023)

The Court of Appeal held that the High Court's declaration—that the relevant awareness for the limitation period under DISP 2.8.2R(2)(b) is that of the Official Receiver—was incorrect. The scheme's overall thrust is that the subject matter of the complaint is the consumer's experience, and the relevant awareness is that of the bankrupt. However, the Court declined to make a positive declaration in favour of the Official Receiver, noting unresolved issues regarding attribution or imputation of the Official Receiver's knowledge to the bankrupt and the potential for cases where no time limit would run. The High Court's declaration was set aside, but no further declaration was made.

Citation
[2023] EWCA Civ 367
Parties
Defendant/appellant: The Official Receiver; Claimant/respondent: Shop Direct Finance Company Limited
Jurisdiction
England and Wales
Judgment Date
05 April 2023
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed; High Court's declaration set aside; no further declaration made.
Legal Topics
Bankruptcy, Financial Ombudsman Service, Limitation Periods, Payment Protection Insurance (ppi) Mis Selling, Delegated Legislation Interpretation
Insolvency Law Financial Services Law Administrative Law Bankruptcy Financial Ombudsman Service Limitation Periods Payment Protection Insurance (ppi) Mis Selling Delegated Legislation Interpretation

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Parties

The Official Receiver

Defendant/appellant

Shop Direct Finance Company Limited

Claimant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether the relevant awareness for the limitation period under DISP 2.8.2R(2)(b) is that of the bankrupt or the Official Receiver as trustee in bankruptcy when referring PPI mis-selling complaints to the Financial Ombudsman Service.

Ratio Decidendi

The Court of Appeal held that the High Court's declaration—that the relevant awareness for the limitation period under DISP 2.8.2R(2)(b) is that of the Official Receiver—was incorrect. The scheme's overall thrust is that the subject matter of the complaint is the consumer's experience, and the relevant awareness is that of the bankrupt. However, the Court declined to make a positive declaration in favour of the Official Receiver, noting unresolved issues regarding attribution or imputation of the Official Receiver's knowledge to the bankrupt and the potential for cases where no time limit would run. The High Court's declaration was set aside, but no further declaration was made.

Court Disposition

Appeal allowed; High Court's declaration set aside; no further declaration made.

Orders

  • The appeal is allowed.
  • The declaration granted by the High Court is set aside.