Revenue and Customs v Yousef & Ors [2008] EWHC 423 (Ch) (06 March 2008)

Revenue and Customs v Yousef & Ors [2008] EWHC 423 (Ch) (06 March 2008)

Neither the Civil Liability (Contribution) Act 1978 nor the doctrine in Dering v Earl of Winchelsea provides a basis for contribution or indemnity among directors jointly and severally liable under s217 of the Insolvency Act 1986 for company debts; such rights are impliedly excluded by statute. The normal order is that the unsuccessful Part 20 Claimant pays the costs of the successful Part 20 Defendants.

Citation
[2008] EWHC 423 (Ch)
Parties
Claimant: HM Revenue and Customs; Defendant/part 20 Claimant: Mustafa Abobakor Ben Yousef; Part 20 Defendant: Colin Bate; Part 20 Defendant: Thomas John Coakley; Part 20 Defendant: Stuart Langford McArthur
Jurisdiction
England and Wales
Judgment Date
06 March 2008
Procedural Posture
Civil (chancery Division) / Judgment on Costs and Part 20 Claim After Compromise of Main Claim
Outcome
Part 20 claim dismissed with costs to the Part 20 Defendants against Mr Yousef.
Legal Topics
Director Liability, Contribution and Indemnity, Costs Orders, Insolvency Act 1986 S216 217, Civil Liability (contribution) Act 1978
Insolvency Law Company Law Civil Procedure Director Liability Contribution and Indemnity Costs Orders Insolvency Act 1986 S216 217 Civil Liability (contribution) Act 1978

Case Brief

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Parties

HM Revenue and Customs

Claimant

Mustafa Abobakor Ben Yousef

Defendant/part 20 Claimant

Colin Bate

Part 20 Defendant

Thomas John Coakley

Part 20 Defendant

Stuart Langford McArthur

Part 20 Defendant

Procedural Posture

Civil (chancery Division) / Judgment on Costs and Part 20 Claim After Compromise of Main Claim

Legal Issues

  1. 1 Whether a claim for contribution or indemnity lies against Part 20 Defendants under the Civil Liability (Contribution) Act 1978 or the doctrine in Dering v Earl of Winchelsea in respect of statutory director liability for company debts under Insolvency Act 1986 s217
  2. 2 Whether the normal costs order should be departed from in light of the compromise of the main claim and conduct of the parties

Ratio Decidendi

Neither the Civil Liability (Contribution) Act 1978 nor the doctrine in Dering v Earl of Winchelsea provides a basis for contribution or indemnity among directors jointly and severally liable under s217 of the Insolvency Act 1986 for company debts; such rights are impliedly excluded by statute. The normal order is that the unsuccessful Part 20 Claimant pays the costs of the successful Part 20 Defendants.

Court Disposition

Part 20 claim dismissed with costs to the Part 20 Defendants against Mr Yousef.

Orders

  • Part 20 claim dismissed
  • Mr Yousef to pay the costs of the Part 20 Defendants