Newmafruit Farms Ltd & Ors v Pither & Ors [2016] EWHC 2205 (QB) (09 September 2016)

Newmafruit Farms Ltd & Ors v Pither & Ors [2016] EWHC 2205 (QB) (09 September 2016)

Mr Pither did not assume personal liability for the £125,000 lent to AMP under the 2009 Agreement by entering into the June 2011 Agreement; the sums claimed at rows 3, 4, 6, 7, 5, 8-27, and 30 were loans to Mr Pither and are repayable, as the defences of joint venture, profit-sharing, and application of sale proceeds lack real substance; the CCA/FSMA defences fail as the loans were for business purposes and Newmafruit was not carrying on a consumer credit business; summary judgment is granted for these sums except for rows 1, 2, 28, and 29 where the evidence is insufficient for summary determination.

Citation
[2016] EWHC 2205 (QB)
Parties
Claimant: Newmafruit Farms Limited; Claimant: Priory Homes (Kent) Limited (in administration); Claimant: Priory Homes (Norfolk) Limited (in administration); Defendant: Alan Pither; Defendant: Derek Robert Peter; Defendant: Priory Homes East Limited (in creditors' voluntary liquidation); Defendant: AMP Consultants Limited; Defendant: Brill Links Sports Management Limited (in creditors' voluntary liquidation)
Jurisdiction
England and Wales
Judgment Date
09 September 2016
Procedural Posture
Commercial Debt and Related Claims / Application for Strike Out And/or Summary Judgment
Outcome
Summary judgment granted in part; application dismissed in part
Legal Topics
Loan Agreements, Summary Judgment, Strike Out Applications, Consumer Credit Act 1974, Financial Services and Markets Act 2000, Estoppel, Waiver, Set Off, Joint Ventures, Freezing Injunctions
Commercial Law Contract Law Civil Procedure Loan Agreements Summary Judgment Strike Out Applications Consumer Credit Act 1974 Financial Services and Markets Act 2000 +5 more

Case Brief

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Parties

Newmafruit Farms Limited

Claimant

Priory Homes (Kent) Limited (in administration)

Claimant

Priory Homes (Norfolk) Limited (in administration)

Claimant

Alan Pither

Defendant

Derek Robert Peter

Defendant

Priory Homes East Limited (in creditors' voluntary liquidation)

Defendant

AMP Consultants Limited

Defendant

Brill Links Sports Management Limited (in creditors' voluntary liquidation)

Defendant

Procedural Posture

Commercial Debt and Related Claims / Application for Strike Out And/or Summary Judgment

Legal Issues

  1. 1 Whether the defendant is liable to repay sums advanced under various loan agreements and/or as part of joint ventures
  2. 2 Whether the June 2011 Agreement subsumed prior lending and imposed personal liability on Mr Pither for loans to AMP
  3. 3 Whether subsequent profit-sharing agreements extinguished or varied repayment obligations

Ratio Decidendi

Mr Pither did not assume personal liability for the £125,000 lent to AMP under the 2009 Agreement by entering into the June 2011 Agreement; the sums claimed at rows 3, 4, 6, 7, 5, 8-27, and 30 were loans to Mr Pither and are repayable, as the defences of joint venture, profit-sharing, and application of sale proceeds lack real substance; the CCA/FSMA defences fail as the loans were for business purposes and Newmafruit was not carrying on a consumer credit business; summary judgment is granted for these sums except for rows 1, 2, 28, and 29 where the evidence is insufficient for summary determination.

Court Disposition

Summary judgment granted in part; application dismissed in part

Orders

  • Summary judgment for the claimants against Mr Pither for £1,735,413 (excluding sums at rows 1, 2, 28, and 29) plus interest as claimed.
  • Application for summary judgment in respect of £125,000 (rows 1 and 2) and sums at rows 28 and 29 dismissed.