Commission Recovery Ltd v Marks & Clerk LLP & Anor [2023] EWHC 398 (Comm) (24 February 2023)

Commission Recovery Ltd v Marks & Clerk LLP & Anor [2023] EWHC 398 (Comm) (24 February 2023)

The assignment from Bambach Europe to the Claimant is not unlawful or invalid as it is an assignment of property (the undisclosed commissions) and not a bare right to litigate; the claim is not struck out. The 'same interest' requirement under CPR 19.6 is satisfied as the class shares a common issue regarding undisclosed commissions, and any differences do not create a conflict of interest. The Claimant may act as a representative for the class.

Citation
[2023] EWHC 398 (Comm)
Parties
Claimant: Commission Recovery Limited; First Defendant: Marks & Clerk LLP; Second Defendant: Long Acre Renewals (A Firm)
Jurisdiction
England and Wales
Judgment Date
24 February 2023
Procedural Posture
Commercial Court Claim (strike Out and Representative Action Application) / Interlocutory Judgment on Strike Out and Representative Action Applications
Outcome
Defendants' application to strike out the claim and to prevent the Claimant from acting as a representative is dismissed.
Legal Topics
Secret Commissions, Representative Actions, Assignment of Claims, Champerty, Fiduciary Duties, Civil Remedies, Class Actions
Civil Procedure Commercial Law Equity Secret Commissions Representative Actions Assignment of Claims Champerty Fiduciary Duties +2 more

Case Brief

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 4 Authorities cited 21 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Commission Recovery Limited

Claimant

Marks & Clerk LLP

First Defendant

Long Acre Renewals (A Firm)

Second Defendant

Procedural Posture

Commercial Court Claim (strike Out and Representative Action Application) / Interlocutory Judgment on Strike Out and Representative Action Applications

Legal Issues

  1. 1 Whether the assignment from Bambach Europe to the Claimant is unlawful and invalid as champertous
  2. 2 Whether the claim should be struck out as a bare right to litigate
  3. 3 Whether the Claimant may act as a representative under CPR 19.6 for a class of clients

Ratio Decidendi

The assignment from Bambach Europe to the Claimant is not unlawful or invalid as it is an assignment of property (the undisclosed commissions) and not a bare right to litigate; the claim is not struck out. The 'same interest' requirement under CPR 19.6 is satisfied as the class shares a common issue regarding undisclosed commissions, and any differences do not create a conflict of interest. The Claimant may act as a representative for the class.

Court Disposition

Defendants' application to strike out the claim and to prevent the Claimant from acting as a representative is dismissed.

Orders

  • Claim is not struck out.
  • Claimant may act as a representative under CPR 19.6.