Customs & Excise v Sawyer & Ors [2001] EWCA Civ 1976 (7 November 2001)

Customs & Excise v Sawyer & Ors [2001] EWCA Civ 1976 (7 November 2001)

Once the judge found the interveners to be bona fide, there was no basis to conclude the claims were not debts in the ordinary course of business. The sums claimed were ordinary business debts, and the refusal to vary the freezing order was unjustified. The appeal was allowed and the variation to permit payment out was granted.

Citation
[2001] EWCA Civ 1976
Parties
Claimant/respondent: Commissioners of Customs & Excise; First Defendant: Mark Richard Sawyer (Trading as www.Marky-boy.co.uk); Second Defendant: Power-Serve (UK) Ltd; First Intervener/appellant: Valley Supplies Ltd; Second Intervener/appellant: Tradelink Distribution Ltd
Jurisdiction
England and Wales
Judgment Date
07 November 2001
Procedural Posture
Civil Appeal / Appeal From Order of His Honour Judge Playford QC
Outcome
Appeal allowed
Legal Topics
Freezing Orders, Mareva Injunctions, Ordinary Course of Business Debts, VAT Fraud, Proprietary Claims
Civil Procedure Commercial Law Freezing Orders Mareva Injunctions Ordinary Course of Business Debts VAT Fraud Proprietary Claims

Case Brief

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Parties

Commissioners of Customs & Excise

Claimant/respondent

Mark Richard Sawyer (Trading as www.Marky-boy.co.uk)

First Defendant

Power-Serve (UK) Ltd

Second Defendant

Valley Supplies Ltd

First Intervener/appellant

Tradelink Distribution Ltd

Second Intervener/appellant

Procedural Posture

Civil Appeal / Appeal From Order of His Honour Judge Playford QC

Legal Issues

  1. 1 Whether interveners are entitled to payment out of sums under a freezing order as ordinary business debts
  2. 2 Whether the sums claimed are debts in the ordinary course of business or inchoate liabilities
  3. 3 Whether the interveners acted bona fide and without collusion in the alleged VAT fraud

Ratio Decidendi

Once the judge found the interveners to be bona fide, there was no basis to conclude the claims were not debts in the ordinary course of business. The sums claimed were ordinary business debts, and the refusal to vary the freezing order was unjustified. The appeal was allowed and the variation to permit payment out was granted.

Court Disposition

Appeal allowed

Orders

  • Variation of freezing order to permit payment out to interveners as sought
  • Costs in the Court of Appeal assessed at £10,000 and half of costs below awarded to appellants