Schmitt v Deichmann & Ors [2012] EWHC 62 (Ch) (23 January 2012)

Schmitt v Deichmann & Ors [2012] EWHC 62 (Ch) (23 January 2012)

The English court has jurisdiction at common law to recognise and assist a foreign administrator, including authorising the use of s. 423 of the Insolvency Act 1986, provided such assistance is consistent with what could be done in a domestic insolvency. The principle of universality and international comity...

Source-derived case information.

Citation
[2012] EWHC 62 (Ch)
Parties
Applicant: Frank Schmitt; Appellants: Henning Deichmann and 14 Others
Jurisdiction
England and Wales
Judgment Date
23 January 2012
Procedural Posture
Appeal / Judgment on Appeal From Registrar's Order Granting Recognition and Powers to Foreign Administrator
Outcome
Appeal dismissed
Legal Topics
Cross Border Insolvency, Recognition of Foreign Insolvency Proceedings, Common Law Powers of Assistance, Statutory Interpretation of Insolvency Act 1986, Jurisdiction to Set Aside Transactions at Undervalue
Insolvency Private International Law Cross Border Insolvency Recognition of Foreign Insolvency Proceedings Common Law Powers of Assistance Statutory Interpretation of Insolvency Act 1986 Jurisdiction to Set Aside Transactions at Undervalue

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Summary, issues, holding and outcome

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Parties

Frank Schmitt

Applicant

Henning Deichmann and 14 Others

Appellants

Procedural Posture

Appeal / Judgment on Appeal From Registrar's Order Granting Recognition and Powers to Foreign Administrator

Legal Issues

  1. 1 Whether the English court has inherent common law jurisdiction to permit a foreign administrator to exercise statutory powers under s. 423 of the Insolvency Act 1986
  2. 2 Whether common law powers allow a foreign administrator to establish and exercise statutory rights not expressly available under the Act
  3. 3 Whether s. 426 of the Insolvency Act 1986 precludes or limits common law assistance

Ratio Decidendi

The English court has jurisdiction at common law to recognise and assist a foreign administrator, including authorising the use of s. 423 of the Insolvency Act 1986, provided such assistance is consistent with what could be done in a domestic insolvency. The principle of universality and international comity supports granting such relief, and the statutory scheme does not preclude the exercise of common law powers in these circumstances.

Court Disposition

Appeal dismissed

Orders

  • Recognition and assistance to the foreign administrator affirmed
  • All consequential matters adjourned to a further hearing on 23 February 2012