Abbey Forwarding Ltd. v Hone & Ors [2010] EWHC 1532 (Ch) (14 May 2010)

Abbey Forwarding Ltd. v Hone & Ors [2010] EWHC 1532 (Ch) (14 May 2010)

The proposed loan to Wingpitch Limited is not within the ordinary and proper course of business exception in the freezing order, as there is no established practice of such loans by the defendants to Wingpitch. However, applying the principles in Noga and weighing the interests of justice, the court finds it just to permit a limited variation of the freezing order to allow the defendants to make a loan to Wingpitch to pay specified outstanding and imminent business rates, subject to conditions and partial reduction for other sources of payment.

Citation
[2010] EWHC 1532 (Ch)
Parties
Respondent/claimant: Abbey Forwarding Limited; Applicant/defendant: Mr Hone; Applicant/defendant: Patrick Daniel Owen; Applicant/defendant: William James Owen
Jurisdiction
England and Wales
Judgment Date
14 May 2010
Procedural Posture
Application to Vary Freezing Order in Ongoing Company Litigation / Interlocutory Application
Outcome
Application granted in part
Legal Topics
Freezing Injunctions, Variation of Court Orders, Directors' Duties, Liquidation, Interim Relief
Civil Procedure Insolvency Company Law Freezing Injunctions Variation of Court Orders Directors' Duties Liquidation Interim Relief

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Parties

Abbey Forwarding Limited

Respondent/claimant

Mr Hone

Applicant/defendant

Patrick Daniel Owen

Applicant/defendant

William James Owen

Applicant/defendant

Procedural Posture

Application to Vary Freezing Order in Ongoing Company Litigation / Interlocutory Application

Legal Issues

  1. 1 Whether the freezing order should be varied to permit the defendants to make a loan to Wingpitch Limited
  2. 2 Whether the proposed loan falls within the 'ordinary and proper course of business' exception in the freezing order
  3. 3 Whether it is just to permit a variation of the freezing order in the circumstances

Ratio Decidendi

The proposed loan to Wingpitch Limited is not within the ordinary and proper course of business exception in the freezing order, as there is no established practice of such loans by the defendants to Wingpitch. However, applying the principles in Noga and weighing the interests of justice, the court finds it just to permit a limited variation of the freezing order to allow the defendants to make a loan to Wingpitch to pay specified outstanding and imminent business rates, subject to conditions and partial reduction for other sources of payment.

Court Disposition

Application granted in part

Orders

  • Variation of the freezing order to permit the defendants to make a loan to Wingpitch Limited for payment of £25,469 in outstanding rates and three months' rates (April, May, June 2010) on 38,000 square feet, less £8,000 to be paid by Abbey Fireplaces; obligation to restore funds if warehouse is let and income...