Cofacredit SA v Clive Morris & Mora UK Ltd

Cofacredit SA v Clive Morris & Mora UK Ltd

UK domestic debts of Mora UK are not subject to the Factoring Agreement. The quittances (subrogation receipts) do not, by themselves, give rise to a valid factoring of UK domestic debts unless ratified by Mora UK, which was not established on the evidence. Cofacredit’s rights against Mora UK are governed by French law, but the expert evidence was insufficient to determine the extent of any claim in light of the revolving nature of the accounts. Cofacredit’s rights against Mr Morris are restitutionary and governed by English law, but the court declined to determine whether any such claim subsists on the facts and pleadings as they stand.

Parties
Claimant: Cofacredit SA; Defendant: Clive Morris; Defendant: Mora UK Ltd (in liquidation)
Jurisdiction
England and Wales
Judgment Date
03 March 2006
Procedural Posture
Civil (commercial/contract) / Trial of Preliminary Issues
Outcome
Preliminary issues determined; no final relief granted; further directions to be given.
Legal Topics
Factoring Agreements, Assignment and Subrogation of Debts, Restitution, Liquidator's Liability, Cross Border Insolvency, Interpretation of Contracts
Commercial Law Conflict of Laws Insolvency Law Factoring Agreements Assignment and Subrogation of Debts Restitution Liquidator's Liability Cross Border Insolvency +1 more

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Parties

Cofacredit SA

Claimant

Clive Morris

Defendant

Mora UK Ltd (in liquidation)

Defendant

Procedural Posture

Civil (commercial/contract) / Trial of Preliminary Issues

Legal Issues

  1. 1 Whether UK domestic debts of Mora UK were subject to the Factoring Agreement governed by French law
  2. 2 Whether Cofacredit is entitled under French law to recover from Mr Morris and/or Mora UK monies paid to them by Mora UK’s debtors in respect of debts factored under the Factoring Agreement
  3. 3 Whether, if French law does not provide a remedy, Cofacredit can recover under English law on a restitutionary basis

Ratio Decidendi

UK domestic debts of Mora UK are not subject to the Factoring Agreement. The quittances (subrogation receipts) do not, by themselves, give rise to a valid factoring of UK domestic debts unless ratified by Mora UK, which was not established on the evidence. Cofacredit’s rights against Mora UK are governed by French law, but the expert evidence was insufficient to determine the extent of any claim in light of the revolving nature of the accounts. Cofacredit’s rights against Mr Morris are restitutionary and governed by English law, but the court declined to determine whether any such claim subsists on the facts and pleadings as they stand.

Court Disposition

Preliminary issues determined; no final relief granted; further directions to be given.