BCS Corporate Acceptances Ltd & Ors v Terry [2018] EWHC 2349 (QB) (07 September 2018)

BCS Corporate Acceptances Ltd & Ors v Terry [2018] EWHC 2349 (QB) (07 September 2018)

There was no material non-disclosure or abuse of process by the Claimants in obtaining the interim third party debt order. The funds in the solicitor's client account, unless already billed and due for legal fees, remain a debt due to the Defendant and are subject to the interim third party debt order. Only sums for which proper evidence of billing and due payment is provided may be paid out to the solicitors. The source of the funds (third party funding) does not alter their status as assets of the Defendant for the purposes of enforcement at this stage.

Citation
[2018] EWHC 2349 (QB)
Parties
Claimant: BCS Corporate Acceptances Limited; Claimant: BCS Offshore Funding Limited; Claimant: Mr John Taylor; Defendant: Daniel Terry
Jurisdiction
England and Wales
Judgment Date
07 September 2018
Procedural Posture
High Court Civil Proceedings (queen's Bench Division) / Interlocutory Application Regarding Freezing Injunction and Interim Third Party Debt Order
Outcome
Application dismissed in substantial part; no order for payment out at this stage; directions given for possible payment if evidence provided.
Legal Topics
Freezing Injunctions, Third Party Debt Orders, Solicitor's Client Account, Non Disclosure, Abuse of Process, Set Off, Access to Justice
Civil Procedure Enforcement of Judgments Injunctions Freezing Injunctions Third Party Debt Orders Solicitor's Client Account Non Disclosure Abuse of Process +2 more

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Parties

BCS Corporate Acceptances Limited

Claimant

BCS Offshore Funding Limited

Claimant

Mr John Taylor

Claimant

Daniel Terry

Defendant

Procedural Posture

High Court Civil Proceedings (queen's Bench Division) / Interlocutory Application Regarding Freezing Injunction and Interim Third Party Debt Order

Legal Issues

  1. 1 Whether funds in a solicitor's client account are subject to a freezing injunction and/or third party debt order
  2. 2 Whether the interim third party debt order should be set aside for non-disclosure or abuse of process
  3. 3 Whether sums held for legal fees can be paid out despite the orders

Ratio Decidendi

There was no material non-disclosure or abuse of process by the Claimants in obtaining the interim third party debt order. The funds in the solicitor's client account, unless already billed and due for legal fees, remain a debt due to the Defendant and are subject to the interim third party debt order. Only sums for which proper evidence of billing and due payment is provided may be paid out to the solicitors. The source of the funds (third party funding) does not alter their status as assets of the Defendant for the purposes of enforcement at this stage.

Court Disposition

Application dismissed in substantial part; no order for payment out at this stage; directions given for possible payment if evidence provided.

Orders

  • No order for payment out of client account at this stage.
  • If Defendant provides satisfactory evidence to Claimants that bills for legal fees were rendered and due before service of the interim order, Claimants should allow payment out to solicitors, subject to court determination if disputed.