Gwinnutt v George & Anor

Gwinnutt v George & Anor

Unpaid barristers’ fees arising from non-contractual, honorarium engagements do not vest in the trustee in bankruptcy as property under the Insolvency Act 1986. Such fees are not property, choses in action, or enforceable rights, but mere moral obligations. They are not realisable assets and do not fall within the statutory definition of property for the purposes of vesting in the trustee.

Parties
Claimant: Simon Matthew Gwinnutt (as the First Defendant’s Trustee in Bankruptcy); First Defendant: Nicholas Frank Raymond George; Second Defendant: Michael Ryan
Jurisdiction
England and Wales
Judgment Date
14 August 2018
Procedural Posture
Civil Bankruptcy / Judgment on Preliminary Issue
Outcome
Preliminary issue determined in favour of the defendants; unpaid non-contractual barristers’ fees do not vest in the trustee in bankruptcy.
Legal Topics
Vesting of Property in Bankruptcy, Barristers' Fees, Non Contractual Engagements, Honorarium Basis, Trustee's Rights, Property Definition Under Insolvency Act
Insolvency Law Bankruptcy Law Professional Ethics Vesting of Property in Bankruptcy Barristers' Fees Non Contractual Engagements Honorarium Basis Trustee's Rights +1 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 19 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Simon Matthew Gwinnutt (as the First Defendant’s Trustee in Bankruptcy)

Claimant

Nicholas Frank Raymond George

First Defendant

Michael Ryan

Second Defendant

Procedural Posture

Civil Bankruptcy / Judgment on Preliminary Issue

Legal Issues

  1. 1 Whether unpaid barristers’ fees arising from non-contractual, honorarium engagements vest in the trustee in bankruptcy as property under the Insolvency Act 1986

Ratio Decidendi

Unpaid barristers’ fees arising from non-contractual, honorarium engagements do not vest in the trustee in bankruptcy as property under the Insolvency Act 1986. Such fees are not property, choses in action, or enforceable rights, but mere moral obligations. They are not realisable assets and do not fall within the statutory definition of property for the purposes of vesting in the trustee.

Court Disposition

Preliminary issue determined in favour of the defendants; unpaid non-contractual barristers’ fees do not vest in the trustee in bankruptcy.

Orders

  • Any unpaid fees of Mr George as at the date of commencement of his bankruptcy which arise under a non-contractual, honorarium engagement do not, or have not, vested in his trustee in bankruptcy.
  • Further directions for the parties to agree an order or apply for a further hearing regarding consequential matters, costs, and permission to appeal.