New Cap Reinsurance Corporation Ltd & Anor v Grant & Ors [2011] EWCA Civ 971 (09 August 2011)

New Cap Reinsurance Corporation Ltd & Anor v Grant & Ors [2011] EWCA Civ 971 (09 August 2011)

Both the Foreign Judgments (Reciprocal Enforcement) Act 1933 and section 426 of the Insolvency Act 1986 apply to foreign judgments for payment of money made in insolvency proceedings. The 1933 Act is not limited to ordinary civil claims and includes insolvency orders; the 1994 Order extends to such judgments. Section 426 also allows for enforcement of foreign insolvency judgments. Where both regimes apply, the 1933 Act takes precedence for enforcement, but section 426 remains available for discretionary assistance. The New South Wales court's jurisdiction is recognized under English law for these purposes.

Citation
[2011] EWCA Civ 971
Parties
Claimant/respondent: New Cap Reinsurance Corporation Ltd (in liquidation); Claimant/respondent: John Raymond Gibbons; Defendant/appellant: A E Grant and others as members of Lloyd's Syndicate 991 for the 1997 Year of Account; Defendant/appellant: A E Grant and others as members of Lloyd's Syndicate 991 for the 1998 Year of Account
Jurisdiction
England and Wales
Judgment Date
09 August 2011
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division, Companies Court)
Outcome
Appeal dismissed; High Court order affirmed.
Legal Topics
Enforcement of Foreign Judgments, Cross Border Insolvency, Recognition of Insolvency Proceedings, Section 426 Insolvency Act 1986, Foreign Judgments (reciprocal Enforcement) Act 1933
Insolvency Law Conflict of Laws Civil Procedure Enforcement of Foreign Judgments Cross Border Insolvency Recognition of Insolvency Proceedings Section 426 Insolvency Act 1986 Foreign Judgments (reciprocal Enforcement) Act 1933

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Parties

New Cap Reinsurance Corporation Ltd (in liquidation)

Claimant/respondent

John Raymond Gibbons

Claimant/respondent

A E Grant and others as members of Lloyd's Syndicate 991 for the 1997 Year of Account

Defendant/appellant

A E Grant and others as members of Lloyd's Syndicate 991 for the 1998 Year of Account

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court (chancery Division, Companies Court)

Legal Issues

  1. 1 Does the Foreign Judgments (Reciprocal Enforcement) Act 1933 apply to orders made in insolvency proceedings?
  2. 2 Can section 426 of the Insolvency Act 1986 be used to enforce a foreign insolvency judgment for payment of money?
  3. 3 Is enforcement at common law available for such foreign insolvency judgments?

Ratio Decidendi

Both the Foreign Judgments (Reciprocal Enforcement) Act 1933 and section 426 of the Insolvency Act 1986 apply to foreign judgments for payment of money made in insolvency proceedings. The 1933 Act is not limited to ordinary civil claims and includes insolvency orders; the 1994 Order extends to such judgments. Section 426 also allows for enforcement of foreign insolvency judgments. Where both regimes apply, the 1933 Act takes precedence for enforcement, but section 426 remains available for discretionary assistance. The New South Wales court's jurisdiction is recognized under English law for these purposes.

Court Disposition

Appeal dismissed; High Court order affirmed.

Orders

  • Order for payment of sums as requested by the New South Wales court is affirmed.
  • Assistance under section 426 of the Insolvency Act 1986 is granted to enforce the New South Wales order.