Patley Wood Farm LLP & Ors v Kristina Kicks & Anor

Patley Wood Farm LLP & Ors v Kristina Kicks & Anor

The trustees' decision not to join the Eviction Claim appeal was not perverse. The judge failed to give proper weight to the trustees' professional discretion, the lack of real benefit to the bankruptcy estates, the litigation risks, and the problematic influence of third party funders. The test for intervention under section 303 was not met.

Parties
Applicant/respondent: Patley Wood Farm LLP; Applicant/respondent: Lorraine Brehme; Applicant/respondent: The Chedington Court Estate Limited; Respondent/appellant: Kristina Kicks; Respondent/appellant: Blair Carnegie Nimmo
Jurisdiction
England and Wales
Judgment Date
11 September 2024
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal allowed; High Court order set aside
Legal Topics
Trustee in Bankruptcy Duties, Section 303 Insolvency Act 1986, Joinder of Parties, Exercise of Discretion by Trustees, Third Party Funding, Possession Proceedings
Insolvency Law Trust Law Civil Procedure Trustee in Bankruptcy Duties Section 303 Insolvency Act 1986 Joinder of Parties Exercise of Discretion by Trustees Third Party Funding +1 more

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Parties

Patley Wood Farm LLP

Applicant/respondent

Lorraine Brehme

Applicant/respondent

The Chedington Court Estate Limited

Applicant/respondent

Kristina Kicks

Respondent/appellant

Blair Carnegie Nimmo

Respondent/appellant

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether the trustees in bankruptcy's refusal to join possession proceedings was perverse under section 303(1) Insolvency Act 1986
  2. 2 Whether the court should compel trustees to join and seek possession of the property
  3. 3 Whether the trustees' independence was compromised by third party funding and creditor pressure

Ratio Decidendi

The trustees' decision not to join the Eviction Claim appeal was not perverse. The judge failed to give proper weight to the trustees' professional discretion, the lack of real benefit to the bankruptcy estates, the litigation risks, and the problematic influence of third party funders. The test for intervention under section 303 was not met.

Court Disposition

Appeal allowed; High Court order set aside

Orders

  • Order compelling trustees to join Eviction Claim set aside
  • Costs consequences to be determined separately