Singularis Holdings Ltd v Chapelgate Credit Opportunity Master Fund Ltd

Singularis Holdings Ltd v Chapelgate Credit Opportunity Master Fund Ltd

On the correct construction of the funding agreement, a reduction in damages for contributory negligence is not to be disregarded or added back in the calculation of Proceeds for the purpose of the funder's profit share. The relevant clauses concern reductions arising from set-off, counterclaims, or costs orders, not reductions inherent in the quantification of damages due to contributory negligence.

Parties
Claimant: Singularis Holdings Limited (In Official Liquidation); Defendant: ChapelGate Credit Opportunity Master Fund Limited
Jurisdiction
England and Wales
Judgment Date
22 June 2020
Procedural Posture
Civil (contractual Interpretation) / Judgment After Remote Trial on Construction of Funding Agreement
Outcome
Claim allowed; declaration granted in favour of Singularis.
Legal Topics
Litigation Funding, Contractual Interpretation, Contributory Negligence, Damages Calculation
Contract Law Civil Procedure Litigation Funding Contractual Interpretation Contributory Negligence Damages Calculation

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Parties

Singularis Holdings Limited (In Official Liquidation)

Claimant

ChapelGate Credit Opportunity Master Fund Limited

Defendant

Procedural Posture

Civil (contractual Interpretation) / Judgment After Remote Trial on Construction of Funding Agreement

Legal Issues

  1. 1 Whether a reduction in damages for contributory negligence should be added back to the calculation of 'Proceeds' under a litigation funding agreement for the purpose of the funder's profit share.

Ratio Decidendi

On the correct construction of the funding agreement, a reduction in damages for contributory negligence is not to be disregarded or added back in the calculation of Proceeds for the purpose of the funder's profit share. The relevant clauses concern reductions arising from set-off, counterclaims, or costs orders, not reductions inherent in the quantification of damages due to contributory negligence.

Court Disposition

Claim allowed; declaration granted in favour of Singularis.

Orders

  • Declaration that the reduction applied in the judgment of Rose J of 16 February 2017 by reason of contributory fault or negligence is not to be added to the Proceeds, including for the purposes of calculating the Funder’s Profit Share under the Funding Agreement.