Lemos v Church Bay Trust Company Ltd & Ors [2021] EWHC 1173 (Ch) (10 May 2021)

Lemos v Church Bay Trust Company Ltd & Ors [2021] EWHC 1173 (Ch) (10 May 2021)

It is desirable under CPR 19.2(2)(a) to join the joint trustees in bankruptcy as co-claimants to the s.423 claim and grant them sole conduct, as they have a statutory duty to recover assets for all creditors, possess relevant evidence, are now funded and insured, and their joinder furthers the overriding objective by ensuring efficient, fair, and expeditious resolution. The potential disadvantages to the Third Defendant and creditors are outweighed by the benefits of joinder and the risk of further delay or duplication is minimized.

Citation
[2021] EWHC 1173 (Ch)
Parties
Claimant: Joanna Lemos; First Defendant: Church Bay Trust Company Limited; Second Defendant: Roderick Forrest; Third Defendant: Kalliopi Lemos; Applicants/co Claimants (post Joinder): Michael Leeds and Kevin Hellard (Joint Trustees in Bankruptcy of Mr Christos Pandelis Lemos)
Jurisdiction
England and Wales
Judgment Date
10 May 2021
Procedural Posture
Insolvency Act S.423 Claim (transaction Defrauding Creditors) / Interlocutory Application for Joinder and Conduct of Proceedings
Outcome
Application granted
Legal Topics
Joinder of Parties, Trustees in Bankruptcy, Transaction Defrauding Creditors, Case Management, Standing Under Insolvency Act S.423/s.424
Insolvency Civil Procedure Joinder of Parties Trustees in Bankruptcy Transaction Defrauding Creditors Case Management Standing Under Insolvency Act S.423/s.424

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Parties

Joanna Lemos

Claimant

Church Bay Trust Company Limited

First Defendant

Roderick Forrest

Second Defendant

Kalliopi Lemos

Third Defendant

Michael Leeds and Kevin Hellard (Joint Trustees in Bankruptcy of Mr Christos Pandelis Lemos)

Applicants/co Claimants (post Joinder)

Procedural Posture

Insolvency Act S.423 Claim (transaction Defrauding Creditors) / Interlocutory Application for Joinder and Conduct of Proceedings

Legal Issues

  1. 1 Whether the joint trustees in bankruptcy should be joined as co-claimants to a s.423 Insolvency Act 1986 claim and given sole conduct of the proceedings
  2. 2 Whether such joinder is desirable under CPR 19.2(2)
  3. 3 Whether the delay and funding arrangements justify or preclude joinder

Ratio Decidendi

It is desirable under CPR 19.2(2)(a) to join the joint trustees in bankruptcy as co-claimants to the s.423 claim and grant them sole conduct, as they have a statutory duty to recover assets for all creditors, possess relevant evidence, are now funded and insured, and their joinder furthers the overriding objective by ensuring efficient, fair, and expeditious resolution. The potential disadvantages to the Third Defendant and creditors are outweighed by the benefits of joinder and the risk of further delay or duplication is minimized.

Court Disposition

Application granted

Orders

  • The joint trustees in bankruptcy are joined as co-claimants to the s.423 claim.
  • The joint trustees are given sole conduct of the s.423 proceedings from the date of joinder until further order.