Harcus Sinclair (a firm) v Buttonwood Legal Capital Ltd & Ors [2013] EWHC 1193 (Ch) (20 May 2013)

Harcus Sinclair (a firm) v Buttonwood Legal Capital Ltd & Ors [2013] EWHC 1193 (Ch) (20 May 2013)

Buttonwood Legal Capital Limited validly terminated the funding agreement under the reasonable opinion clause, was not estopped from doing so, and no obligation to pay security for costs or further disbursements from escrow arose due to lack of compliant Release Requests and operation of the agreement's terms post-termination.

Citation
[2013] EWHC 1193 (Ch)
Parties
Claimant: Harcus Sinclair (a firm); First Defendant: Buttonwood Legal Capital Limited; Second Defendant: Rylatt Chubb (a firm); Third Defendant: Alternative Real Estate Fund Limited; Fourth Defendant: Roskill Advisors (Cayman) Limited
Jurisdiction
England and Wales
Judgment Date
20 May 2013
Procedural Posture
Interpleader Action / Judgment After Expedited Trial
Outcome
Judgment for Buttonwood Legal Capital Limited
Legal Topics
Litigation Funding Agreements, Termination Clauses, Promissory Estoppel, Security for Costs, Release of Escrow Funds
Contract Law Equity Commercial Litigation Litigation Funding Agreements Termination Clauses Promissory Estoppel Security for Costs Release of Escrow Funds

Case Brief

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Parties

Harcus Sinclair (a firm)

Claimant

Buttonwood Legal Capital Limited

First Defendant

Rylatt Chubb (a firm)

Second Defendant

Alternative Real Estate Fund Limited

Third Defendant

Roskill Advisors (Cayman) Limited

Fourth Defendant

Procedural Posture

Interpleader Action / Judgment After Expedited Trial

Legal Issues

  1. 1 Whether Buttonwood Legal Capital Limited validly terminated the funding agreement under the reasonable opinion clause
  2. 2 Whether promissory estoppel precluded termination without inviting representations
  3. 3 Whether the Borrower was entitled to payment for security for costs and disbursements from escrow

Ratio Decidendi

Buttonwood Legal Capital Limited validly terminated the funding agreement under the reasonable opinion clause, was not estopped from doing so, and no obligation to pay security for costs or further disbursements from escrow arose due to lack of compliant Release Requests and operation of the agreement's terms post-termination.

Court Disposition

Judgment for Buttonwood Legal Capital Limited

Orders

  • Harcus Sinclair to pay the entirety of the monies in the escrow account to Buttonwood Legal Capital Limited
  • No payment to Rylatt Chubb or AREF for security for costs or further disbursements