Federal Bank of the Middle East Ltd v. Hadkinson & Ors [1999] EWHC Ch 201 (20th October, 1999)

Federal Bank of the Middle East Ltd v. Hadkinson & Ors [1999] EWHC Ch 201 (20th October, 1999)

Mr Hadkinson did not act deliberately or intentionally in breach of the freezing order but failed to exercise due care; he relied on general legal advice but did not seek specific advice regarding the transfers. His conduct was culpable to a serious degree but not contumacious. The stay should be lifted subject to conditions, and costs assessed on the standard basis.

Citation
[1999] EWHC Ch 201
Parties
Claimant: FBME; First Defendant: Charles Hadkinson; Part 20 Defendant: Bernadette Margaret Hadkinson; Part 20 Defendant: Louisa Hadkinson; Interested Party: Trustee in Bankruptcy
Jurisdiction
England and Wales
Procedural Posture
Application in Civil Proceedings / Post Judgment, Contempt and Costs Application
Outcome
Stay lifted subject to conditions; costs to be assessed on the standard basis.
Legal Topics
Freezing Orders, Contempt of Court, Disclosure of Assets, Costs Assessment, Trusts, Bankruptcy
Civil Procedure Insolvency Banking Law Freezing Orders Contempt of Court Disclosure of Assets Costs Assessment Trusts +1 more

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Parties

FBME

Claimant

Charles Hadkinson

First Defendant

Bernadette Margaret Hadkinson

Part 20 Defendant

Louisa Hadkinson

Part 20 Defendant

Trustee in Bankruptcy

Interested Party

Procedural Posture

Application in Civil Proceedings / Post Judgment, Contempt and Costs Application

Legal Issues

  1. 1 Whether the stay imposed due to contempt should be lifted
  2. 2 Whether costs should be assessed on the standard or indemnity basis
  3. 3 Whether the contempt was contumacious

Ratio Decidendi

Mr Hadkinson did not act deliberately or intentionally in breach of the freezing order but failed to exercise due care; he relied on general legal advice but did not seek specific advice regarding the transfers. His conduct was culpable to a serious degree but not contumacious. The stay should be lifted subject to conditions, and costs assessed on the standard basis.

Court Disposition

Stay lifted subject to conditions; costs to be assessed on the standard basis.

Orders

  • Mr Hadkinson must pay costs before the stay is lifted.
  • Assets transferred in breach of the freezing order must be returned if possible.