Hugh James Involegal LLP v Berrymans Lace Mawer LLP & Anor

Hugh James Involegal LLP v Berrymans Lace Mawer LLP & Anor

The assignment to Involegal is not champertous or an abuse of process as it falls within the exception for assignments by insolvency practitioners and/or Involegal has a sufficient commercial interest. There is a real prospect that the uninsured claims caused Transform's administration and loss, and the claim should proceed to trial. The ATE insurance policy provides sufficient security for costs, and no order for security or payment into court is just in the circumstances.

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) / Application for Summary Judgment, Strike Out, and Security for Costs
Outcome
Applications for summary judgment, strike out, and security for costs dismissed.
Legal Topics
Champerty and Maintenance, Assignment of Claims, Security for Costs, Summary Judgment, Abuse of Process, Causation of Loss
Civil Procedure Insolvency Professional Negligence Champerty and Maintenance Assignment of Claims Security for Costs Summary Judgment Abuse of Process +1 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) / Application for Summary Judgment, Strike Out, and Security for Costs

Legal Issues

  1. 1 Whether the assignment of the cause of action to Involegal is champertous or an abuse of process
  2. 2 Whether the claimant has a real prospect of establishing loss caused by the alleged negligence
  3. 3 Whether security for costs should be ordered against the claimant

Ratio Decidendi

The assignment to Involegal is not champertous or an abuse of process as it falls within the exception for assignments by insolvency practitioners and/or Involegal has a sufficient commercial interest. There is a real prospect that the uninsured claims caused Transform's administration and loss, and the claim should proceed to trial. The ATE insurance policy provides sufficient security for costs, and no order for security or payment into court is just in the circumstances.

Court Disposition

Applications for summary judgment, strike out, and security for costs dismissed.

Orders

  • Defendants' applications for summary judgment and strike out are dismissed.
  • Defendants' application for security for costs is dismissed.