Loson v Stack & Anor [2018] EWCA Civ 803 (17 April 2018)

Loson v Stack & Anor [2018] EWCA Civ 803 (17 April 2018)

The District Judge erred by granting an instalment order based solely on the debtor's ability to pay, without properly balancing the creditors' interests or considering whether the proposed instalments would realistically discharge the debt within a reasonable time. The order was set aside because the proposed payments would not even cover accruing interest, making repayment of the principal impossible.

Citation
[2018] EWCA Civ 803
Parties
Appellant: Diana Loson; Respondent: Brett Stack; Respondent: Newlyn PLC
Jurisdiction
England and Wales
Judgment Date
17 April 2018
Procedural Posture
Civil Appeal / Appeal From County Court to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Variation of Costs Orders, Instalment Orders, Bankruptcy Petitions, Judgment Enforcement
Civil Procedure Insolvency Law Variation of Costs Orders Instalment Orders Bankruptcy Petitions Judgment Enforcement

Case Brief

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Parties

Diana Loson

Appellant

Brett Stack

Respondent

Newlyn PLC

Respondent

Procedural Posture

Civil Appeal / Appeal From County Court to Court of Appeal

Legal Issues

  1. 1 Whether the County Court was correct to grant an instalment order for payment of costs under CPR 40.9A at £50 per month
  2. 2 Whether such an order was reasonable and proportionate given the debtor's financial circumstances and the interests of the creditors
  3. 3 Whether the District Judge applied the correct legal test in exercising discretion under CPR 40.9A

Ratio Decidendi

The District Judge erred by granting an instalment order based solely on the debtor's ability to pay, without properly balancing the creditors' interests or considering whether the proposed instalments would realistically discharge the debt within a reasonable time. The order was set aside because the proposed payments would not even cover accruing interest, making repayment of the principal impossible.

Court Disposition

Appeal dismissed

Orders

  • District Judge's instalment order set aside
  • Ms Loson's application for payment by instalments dismissed