Frosdick v Fox & Anor [2017] EWHC 1737 (Ch) (11 July 2017)

Frosdick v Fox & Anor [2017] EWHC 1737 (Ch) (11 July 2017)

The bankrupt is not a 'person interested' in property that has vested in the trustee under section 316 of the Insolvency Act 1986 and therefore cannot serve a valid notice to prevent disclaimer. The trustee's disclaimer of the cause of action was valid, and the claim disclosed no reasonable grounds for proceeding. The action must be struck out under CPR 3.4.

Citation
[2017] EWHC 1737 (Ch)
Parties
Claimant: David John Frosdick; First Defendant: Nigel Ian Fox; Second Defendant: Baker Tilly Creditor Services LLP
Jurisdiction
England and Wales
Judgment Date
11 July 2017
Procedural Posture
Application to Strike Out Claim / High Court, Chancery Division, Hearing of Strike Out Application
Outcome
Claim struck out and dismissed
Legal Topics
Disclaimer of Onerous Property, Trustee in Bankruptcy Powers, Civil Restraint Orders, Strike Out Applications, Professional Negligence Claims, Assignment of Causes of Action
Insolvency Bankruptcy Civil Procedure Disclaimer of Onerous Property Trustee in Bankruptcy Powers Civil Restraint Orders Strike Out Applications Professional Negligence Claims +1 more

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Parties

David John Frosdick

Claimant

Nigel Ian Fox

First Defendant

Baker Tilly Creditor Services LLP

Second Defendant

Procedural Posture

Application to Strike Out Claim / High Court, Chancery Division, Hearing of Strike Out Application

Legal Issues

  1. 1 Whether the bankrupt (claimant) could serve a valid notice under section 316 of the Insolvency Act 1986 to prevent disclaimer of a cause of action by the trustee
  2. 2 Whether the trustee's disclaimer of the cause of action was valid
  3. 3 Whether the claim disclosed reasonable grounds and should be struck out

Ratio Decidendi

The bankrupt is not a 'person interested' in property that has vested in the trustee under section 316 of the Insolvency Act 1986 and therefore cannot serve a valid notice to prevent disclaimer. The trustee's disclaimer of the cause of action was valid, and the claim disclosed no reasonable grounds for proceeding. The action must be struck out under CPR 3.4.

Court Disposition

Claim struck out and dismissed

Orders

  • The action is struck out under CPR 3.4.
  • The claim is dismissed.