Lock v Stanley & Anor (Re Edengate Homes (Butley Hall) Ltd) [2021] EWHC 2970 (Ch) (05 November 2021)

Lock v Stanley & Anor (Re Edengate Homes (Butley Hall) Ltd) [2021] EWHC 2970 (Ch) (05 November 2021)

Mrs Lock did not have standing to challenge the assignment because her interests were not aligned with the creditors as a whole, but rather with protecting herself and her family as targets of the claims. Even if she had standing, the liquidator's actions were not perverse, as the assignment terms were commercially...

Source-derived case information.

Citation
[2021] EWHC 2970 (Ch)
Parties
Applicant: Adele Lock; Respondent: Paul Stanley (in his capacity as liquidator); Respondent: Edengate Homes (Butley Hall) Limited
Jurisdiction
England and Wales
Judgment Date
05 November 2021
Procedural Posture
Insolvency Application / Judgment on Application to Set Aside Assignment by Liquidator
Outcome
Application dismissed
Legal Topics
Assignment of Claims by Liquidator, Standing of Creditor to Challenge Liquidator's Acts, Section 168(5) Insolvency Act 1986, Perversity Test for Court Intervention
Insolvency Company Law Assignment of Claims by Liquidator Standing of Creditor to Challenge Liquidator's Acts Section 168(5) Insolvency Act 1986 Perversity Test for Court Intervention

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Summary, issues, holding and outcome

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Parties

Adele Lock

Applicant

Paul Stanley (in his capacity as liquidator)

Respondent

Edengate Homes (Butley Hall) Limited

Respondent

Procedural Posture

Insolvency Application / Judgment on Application to Set Aside Assignment by Liquidator

Legal Issues

  1. 1 Does Mrs Lock have standing to challenge the assignment under section 168(5) of the Insolvency Act 1986?
  2. 2 Was the liquidator's assignment of claims to Manolete perverse or improper such that the court should intervene?

Ratio Decidendi

Mrs Lock did not have standing to challenge the assignment because her interests were not aligned with the creditors as a whole, but rather with protecting herself and her family as targets of the claims. Even if she had standing, the liquidator's actions were not perverse, as the assignment terms were commercially reasonable and there was no evidence a better deal could have been achieved by canvassing the targets.

Court Disposition

Application dismissed

Orders

  • Application to set aside the assignment is dismissed.