4Eng Ltd v Harper & Ors

4Eng Ltd v Harper & Ors

Transfers by Barry Simpson to Joyce Simpson after April/May 2003, including his half share in Sunset Lake, the Portman Building Society account, the Jeep Cherokee, and the HSBC investment account, were transactions at undervalue made for the substantial purpose of putting assets beyond the reach of creditors. Restorative orders are appropriate under s. 423 and s. 425, including re-transfer of legal title, money payments, and inquiry into loss caused by misrepresentation. Earlier transfers and joint accounts were not impugned as they were for legitimate purposes or pre-dated the relevant time.

Parties
Claimant: 4Eng Limited; First Defendant: Roger Harper; Second Defendant: Barry Alexander Simpson; Third Defendant: Brenda Harper; Fourth Defendant: Andrew Harper; Fifth Defendant: Bomar Holdings Limited; Sixth Defendant: Joyce Simpson; Seventh Defendant: Adam Simpson
Jurisdiction
England and Wales
Judgment Date
26 October 2009
Procedural Posture
Civil Chancery (insolvency/restorative Relief) / Judgment After Trial on S. 423 Insolvency Act 1986 Application
Outcome
Claim allowed in part; restorative orders granted under s. 423 and s. 425 Insolvency Act 1986.
Legal Topics
Transactions at Undervalue, Fraudulent Conveyance, Restorative Remedies, Disclosure Obligations, Freezing Orders
Insolvency Law Civil Procedure Trusts Law Transactions at Undervalue Fraudulent Conveyance Restorative Remedies Disclosure Obligations Freezing Orders

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Parties

4Eng Limited

Claimant

Roger Harper

First Defendant

Barry Alexander Simpson

Second Defendant

Brenda Harper

Third Defendant

Andrew Harper

Fourth Defendant

Bomar Holdings Limited

Fifth Defendant

Joyce Simpson

Sixth Defendant

Adam Simpson

Seventh Defendant

Procedural Posture

Civil Chancery (insolvency/restorative Relief) / Judgment After Trial on S. 423 Insolvency Act 1986 Application

Legal Issues

  1. 1 Whether transfers by Barry Simpson to Joyce Simpson were transactions at undervalue under s. 423 Insolvency Act 1986
  2. 2 Whether such transfers were made for the purpose of putting assets beyond the reach of creditors or prejudicing their interests
  3. 3 What restorative orders are appropriate under s. 423 and s. 425 Insolvency Act 1986

Ratio Decidendi

Transfers by Barry Simpson to Joyce Simpson after April/May 2003, including his half share in Sunset Lake, the Portman Building Society account, the Jeep Cherokee, and the HSBC investment account, were transactions at undervalue made for the substantial purpose of putting assets beyond the reach of creditors. Restorative orders are appropriate under s. 423 and s. 425, including re-transfer of legal title, money payments, and inquiry into loss caused by misrepresentation. Earlier transfers and joint accounts were not impugned as they were for legitimate purposes or pre-dated the relevant time.

Court Disposition

Claim allowed in part; restorative orders granted under s. 423 and s. 425 Insolvency Act 1986.

Orders

  • Transfer of legal title to Sunset Lake into joint names of Mr and Mrs Simpson as tenants in common.
  • Inquiry into money payment by Mrs Simpson to 4Eng (or Mr Simpson) for loss caused by misrepresentation regarding Sunset Lake ownership.