Welburn v Dibb Lupton Broomhead [2002] EWCA Civ 1601 (24 October 2002)

Welburn v Dibb Lupton Broomhead [2002] EWCA Civ 1601 (24 October 2002)

The IVA created a trust of Mr Welburn's assets, including the claim against SCL, for the benefit of creditors, with the supervisor as trustee. Mr Welburn retained only bare legal title and no beneficial interest. Therefore, any loss from failure to recover from SCL was suffered by the creditors, not Mr Welburn, and he could not recover such losses. The judge was entitled to strike out the claim for loss of opportunity to resume business due to failure to provide particulars despite court orders.

Citation
[2002] EWCA Civ 1601
Parties
Claimant/appellant: Clive Welburn; Defendant/respondent: Dibb Lupton Broomhead
Jurisdiction
England and Wales
Judgment Date
24 October 2002
Procedural Posture
Civil Appeal / Appeal From High Court (technology and Construction Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Individual Voluntary Arrangement (iva), Equitable Assignment, Trusts Arising From Insolvency Arrangements, Solicitor's Negligence, Assessment of Damages, Beneficial Ownership of Claims
Insolvency Law Professional Negligence Trusts Law Individual Voluntary Arrangement (iva) Equitable Assignment Trusts Arising From Insolvency Arrangements Solicitor's Negligence Assessment of Damages +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 12 Party arguments 2 Amounts and remedies 11
Sign in to unlock

Parties

Clive Welburn

Claimant/appellant

Dibb Lupton Broomhead

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court (technology and Construction Court) to Court of Appeal

Legal Issues

  1. 1 Whether the IVA created a trust of the claim against SCL for the benefit of creditors
  2. 2 Whether losses claimed by Mr Welburn were recoverable by him or only by the creditors under the IVA
  3. 3 Whether the judge was correct to strike out the claim for loss of opportunity to resume business

Ratio Decidendi

The IVA created a trust of Mr Welburn's assets, including the claim against SCL, for the benefit of creditors, with the supervisor as trustee. Mr Welburn retained only bare legal title and no beneficial interest. Therefore, any loss from failure to recover from SCL was suffered by the creditors, not Mr Welburn, and he could not recover such losses. The judge was entitled to strike out the claim for loss of opportunity to resume business due to failure to provide particulars despite court orders.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Usual order for costs against the Legal Services Commission