Hughmans Solicitors v Central Stream Services Ltd & Anor

Hughmans Solicitors v Central Stream Services Ltd & Anor

The compromise agreement created an equitable interest in the property in favour of the company, appropriating the net proceeds of sale for its benefit. This interest, being prior in time, took priority over Hughmans' subsequent charging order, which was not made for valuable consideration. The charging order could not displace the company's equitable interest under the Land Registration Act 2002.

Parties
Applicant/appellant: Hughmans Solicitors; Respondent: Central Stream Services Limited (in liquidation); Respondent: Stephen Hunt (as liquidator of Central Stream Services Limited)
Jurisdiction
England and Wales
Judgment Date
20 December 2012
Procedural Posture
Civil Appeal / Judgment on Appeal
Outcome
appeal dismissed
Legal Topics
Proprietary Interests, Priority of Equitable Interests, Charging Orders, Compromise Agreements, Land Registration
Property Law Insolvency Law Contract Law Proprietary Interests Priority of Equitable Interests Charging Orders Compromise Agreements Land Registration

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Parties

Hughmans Solicitors

Applicant/appellant

Central Stream Services Limited (in liquidation)

Respondent

Stephen Hunt (as liquidator of Central Stream Services Limited)

Respondent

Procedural Posture

Civil Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether a compromise agreement created a proprietary interest in property
  2. 2 Whether such interest took priority over a later charging order

Ratio Decidendi

The compromise agreement created an equitable interest in the property in favour of the company, appropriating the net proceeds of sale for its benefit. This interest, being prior in time, took priority over Hughmans' subsequent charging order, which was not made for valuable consideration. The charging order could not displace the company's equitable interest under the Land Registration Act 2002.

Court Disposition

appeal dismissed

Orders

  • Appeal dismissed.