Cedar Securities Limited (in liquidation) & Anor v Mark Richard Phillips (a bankrupt) & Ors

Cedar Securities Limited (in liquidation) & Anor v Mark Richard Phillips (a bankrupt) & Ors

Permission to amend the defence to rely on statutory release is refused as the release should be postponed until after resolution of the claim; permission to amend to rely on the Limitation Clause is refused due to lack of full and frank explanation and because, as a matter of law, liquidators cannot contractually exclude or limit their statutory duties; the section 212 application is not time-barred and permission would be granted if necessary.

Parties
Claimant/applicant: Cedar Securities Limited (In Liquidation) (acting by its liquidator Claire Louise Middlebrook); Claimant/applicant: James Joseph Hannon; Defendant/respondent: Mark Richard Phillips (a bankrupt); Defendant/respondent: Julie Swan
Jurisdiction
England and Wales
Judgment Date
24 October 2025
Procedural Posture
Civil (insolvency/professional Negligence) / Interlocutory Applications: Amendment of Defence, Withdrawal of Admissions, Section 212 Application
Outcome
Applications to amend defence and withdraw admissions refused; statutory release postponed; section 212 permission would be granted if required.
Legal Topics
Liquidator Duties, Limitation of Liability, Release of Liquidators, Section 212 Insolvency Act, Withdrawal of Admissions, Amendment of Pleadings
Insolvency Company Law Professional Negligence Civil Procedure Liquidator Duties Limitation of Liability Release of Liquidators Section 212 Insolvency Act +2 more

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Parties

Cedar Securities Limited (In Liquidation) (acting by its liquidator Claire Louise Middlebrook)

Claimant/applicant

James Joseph Hannon

Claimant/applicant

Mark Richard Phillips (a bankrupt)

Defendant/respondent

Julie Swan

Defendant/respondent

Procedural Posture

Civil (insolvency/professional Negligence) / Interlocutory Applications: Amendment of Defence, Withdrawal of Admissions, Section 212 Application

Legal Issues

  1. 1 Whether Ms Swan can amend her defence to rely on statutory release under Insolvency Act 1986 and limitation of liability clause
  2. 2 Whether permission should be granted to withdraw admissions regarding duty of care
  3. 3 Whether the Limitation Clause in the engagement agreement excludes or limits personal liability of the liquidator

Ratio Decidendi

Permission to amend the defence to rely on statutory release is refused as the release should be postponed until after resolution of the claim; permission to amend to rely on the Limitation Clause is refused due to lack of full and frank explanation and because, as a matter of law, liquidators cannot contractually exclude or limit their statutory duties; the section 212 application is not time-barred and permission would be granted if necessary.

Court Disposition

Applications to amend defence and withdraw admissions refused; statutory release postponed; section 212 permission would be granted if required.

Orders

  • Ms Swan refused permission to amend her defence to rely on statutory release or Limitation Clause.
  • Ms Swan refused permission to withdraw admissions regarding duty of care.