Gertner & Anor v CFL Finance Ltd [2020] EWHC 1241 (Ch) (22 May 2020)

Gertner & Anor v CFL Finance Ltd [2020] EWHC 1241 (Ch) (22 May 2020)

The court found that CFL's debt was not disputed on genuine and substantial grounds; neither the Consumer Credit Act nor the penalty doctrine rendered the Settlement Agreement unenforceable. The application to stay bankruptcy proceedings for a second individual voluntary arrangement was refused, as the largest...

Source-derived case information.

Citation
[2020] EWHC 1241 (Ch)
Parties
First Appellant (respondent Below): Moises Gertner; Second Appellant (opposing Creditor Below): Laser Trust; Respondent (applicant/petitioner Below): CFL Finance Limited
Jurisdiction
England and Wales
Judgment Date
22 May 2020
Procedural Posture
Appeal From Bankruptcy Order / Appeal Hearing and Judgment
Outcome
Appeal dismissed; bankruptcy order affirmed
Legal Topics
Individual Voluntary Arrangements, Creditor's Petition, Good Faith Principle, Penalty Clauses, Consumer Credit Act Applicability
Insolvency Bankruptcy Contract Individual Voluntary Arrangements Creditor's Petition Good Faith Principle Penalty Clauses Consumer Credit Act Applicability

Source-derived case record

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 5 Authorities cited 12 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Moises Gertner

First Appellant (respondent Below)

Laser Trust

Second Appellant (opposing Creditor Below)

CFL Finance Limited

Respondent (applicant/petitioner Below)

Procedural Posture

Appeal From Bankruptcy Order / Appeal Hearing and Judgment

Legal Issues

  1. 1 Whether CFL's debt is disputed on substantial grounds
  2. 2 Whether the Settlement Agreement is unenforceable under the Consumer Credit Act
  3. 3 Whether the Settlement Agreement constitutes a penalty

Ratio Decidendi

The court found that CFL's debt was not disputed on genuine and substantial grounds; neither the Consumer Credit Act nor the penalty doctrine rendered the Settlement Agreement unenforceable. The application to stay bankruptcy proceedings for a second individual voluntary arrangement was refused, as the largest creditor (Laser Trust) was not sufficiently independent and the proposal did not materially differ from the previous arrangement revoked for breach of good faith. The court exercised its discretion to prioritize the wishes of the independent petitioning creditor (CFL) and made a bankruptcy order.

Court Disposition

Appeal dismissed; bankruptcy order affirmed

Orders

  • Application to adjourn proceedings refused
  • Bankruptcy order made against Mr Gertner