Smailes & Anor v McNally & Ors [2013] EWHC 2882 (Ch) (27 September 2013)

Smailes & Anor v McNally & Ors [2013] EWHC 2882 (Ch) (27 September 2013)

The liquidators complied with the unless order by conducting a reasonable search in good faith and providing disclosure lists in accordance with the agreed e-disclosure methodology and Practice Direction 31B. The omission of certain documents was an innocent mistake, promptly remedied, and did not render the search unreasonable or the lists non-compliant. No breach of the disclosure order was established, and no basis for striking out or imposing further unless orders was made out.

Citation
[2013] EWHC 2882 (Ch)
Parties
Applicant (joint Liquidator of Atrium Training Services Limited and Connor Williams Limited): Robert Derek Smailes; Applicant (joint Liquidator of Atrium Training Services Limited and Connor Williams Limited): Stephen Blandford Ryman; Applicant (cwl Action Only): Connor Williams Limited (in liquidation); Respondent (atrium/kss and CWL Actions): John McNally; Respondent (atrium/kss and CWL Actions): George MacLean; Respondent (atrium/kss and CWL Actions): John Alston Dick; Respondent (cwl Action): Pamella McNally; Respondent (cwl Action): Veronica MacLean; Respondent (cwl Action): Tara Birch (nee McNally); Respondent (cwl Action): Paul McNally; Respondent (cwl Action): David MacLean; Respondent (cwl Action): Caroline MacLean; Respondent (cwl Action): Tracey Williams
Jurisdiction
England and Wales
Judgment Date
27 September 2013
Procedural Posture
Company/insolvency Proceedings (applications for Disclosure Orders) / Interlocutory (applications Regarding Compliance With Disclosure Orders and Relief From Sanctions)
Outcome
Applications by respondents for strike out and unless orders refused; liquidators not in breach of disclosure orders; no relief from sanctions required.
Legal Topics
Disclosure Obligations, Relief From Sanctions, Unless Orders, Standard Disclosure, Reasonable Search, Practice Direction 31 B, Electronic Disclosure, Case Management
Insolvency Civil Procedure Disclosure Obligations Relief From Sanctions Unless Orders Standard Disclosure Reasonable Search Practice Direction 31 B +2 more

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Parties

Robert Derek Smailes

Applicant (joint Liquidator of Atrium Training Services Limited and Connor Williams Limited)

Stephen Blandford Ryman

Applicant (joint Liquidator of Atrium Training Services Limited and Connor Williams Limited)

Connor Williams Limited (in liquidation)

Applicant (cwl Action Only)

John McNally

Respondent (atrium/kss and CWL Actions)

George MacLean

Respondent (atrium/kss and CWL Actions)

John Alston Dick

Respondent (atrium/kss and CWL Actions)

Pamella McNally

Respondent (cwl Action)

Veronica MacLean

Respondent (cwl Action)

Tara Birch (nee McNally)

Respondent (cwl Action)

Paul McNally

Respondent (cwl Action)

David MacLean

Respondent (cwl Action)

Caroline MacLean

Respondent (cwl Action)

Tracey Williams

Respondent (cwl Action)

Procedural Posture

Company/insolvency Proceedings (applications for Disclosure Orders) / Interlocutory (applications Regarding Compliance With Disclosure Orders and Relief From Sanctions)

Legal Issues

  1. 1 Whether the liquidators breached the unless order for disclosure in the Atrium proceedings
  2. 2 Whether the lists provided complied with CPR r31.10 and Practice Direction 31B
  3. 3 Whether relief from sanctions should be granted if there was breach

Ratio Decidendi

The liquidators complied with the unless order by conducting a reasonable search in good faith and providing disclosure lists in accordance with the agreed e-disclosure methodology and Practice Direction 31B. The omission of certain documents was an innocent mistake, promptly remedied, and did not render the search unreasonable or the lists non-compliant. No breach of the disclosure order was established, and no basis for striking out or imposing further unless orders was made out.

Court Disposition

Applications by respondents for strike out and unless orders refused; liquidators not in breach of disclosure orders; no relief from sanctions required.

Orders

  • Liquidators to formally disclose scripts in the CWL proceedings.
  • Case management directions to be considered regarding further review of documents with minimal descriptions.