Cuddy v Hawkes

Cuddy v Hawkes

The declaration that Mr Cuddy acted in contravention of section 216 Insolvency Act 1986 was premature and unnecessary, as the issue of abuse of process was to be tried. The cross-petition was unsustainable as pleaded because the relief sought would require acts prohibited by section 216(3).

Parties
Appellant: Cuddy; Respondent: Hawkes
Jurisdiction
England and Wales
Judgment Date
17 October 2007
Procedural Posture
Civil Appeal / Appeal From Chancery Division, Applications for Permission to Appeal and Substantive Appeal
Outcome
Appeal allowed in part, cross-appeal dismissed
Legal Topics
Unfair Prejudice Petition, Section 216 Insolvency Act, Quasi Partnership, Summary Judgment, Strike Out Applications
Company Law Insolvency Law Unfair Prejudice Petition Section 216 Insolvency Act Quasi Partnership Summary Judgment Strike Out Applications

Case Brief

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Parties

Cuddy

Appellant

Hawkes

Respondent

Procedural Posture

Civil Appeal / Appeal From Chancery Division, Applications for Permission to Appeal and Substantive Appeal

Legal Issues

  1. 1 Whether the declaration that Mr Cuddy acted in contravention of section 216 Insolvency Act 1986 should have been made
  2. 2 Whether paragraphs (1) and (2) of the prayer for relief in the Cuddy cross-petition should have been struck out

Ratio Decidendi

The declaration that Mr Cuddy acted in contravention of section 216 Insolvency Act 1986 was premature and unnecessary, as the issue of abuse of process was to be tried. The cross-petition was unsustainable as pleaded because the relief sought would require acts prohibited by section 216(3).

Court Disposition

Appeal allowed in part, cross-appeal dismissed

Orders

  • Declaration set aside and replaced by a direction that the trial proceed on the basis of the judge's findings of fact regarding section 216 contravention
  • Strike out of paragraphs (1) and (2) of the cross-petition upheld