First Caribbean International Bank (Barbados) Ltd and another v Interested Creditors (Saint Lucia)

First Caribbean International Bank (Barbados) Ltd and another v Interested Creditors (Saint Lucia)

The Bank's First Charge, being the first registered hypothec, has priority over the judicial hypothecs of the Interested Creditors. The Consent Orders did not create personal liability for the receiver nor constitute privileged expenses for the common interest of creditors. The Interested Creditors' claims do not outrank the Bank's security.

Parties
1st Respondent: First Caribbean International Bank (Barbados) Ltd; 2nd Respondent: Sunset Village Inc (In Liquidation); Appellants: Interested Creditors
Jurisdiction
England and Wales
Judgment Date
14 March 2022
Procedural Posture
Civil Appeal / Appeal From Court of Appeal of the Eastern Caribbean Supreme Court (saint Lucia) to Privy Council
Outcome
Appeal dismissed
Legal Topics
Priority of Creditors, Liquidation, Hypothecary Security, Receivership Expenses, Judicial Hypothecs
Insolvency Banking and Finance Property Law Priority of Creditors Liquidation Hypothecary Security Receivership Expenses Judicial Hypothecs

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Parties

First Caribbean International Bank (Barbados) Ltd

1st Respondent

Sunset Village Inc (In Liquidation)

2nd Respondent

Interested Creditors

Appellants

Procedural Posture

Civil Appeal / Appeal From Court of Appeal of the Eastern Caribbean Supreme Court (saint Lucia) to Privy Council

Legal Issues

  1. 1 Whether judgment creditors have priority, equal or lower, to a first registered charge in liquidation proceeds
  2. 2 Whether consent orders constitute privileged expenses ranking above secured creditors
  3. 3 Whether estoppel or procedural unfairness alters creditor priority

Ratio Decidendi

The Bank's First Charge, being the first registered hypothec, has priority over the judicial hypothecs of the Interested Creditors. The Consent Orders did not create personal liability for the receiver nor constitute privileged expenses for the common interest of creditors. The Interested Creditors' claims do not outrank the Bank's security.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed.