Burnden Holdings (UK) Ltd & Anor v Fielding & Anor

Burnden Holdings (UK) Ltd & Anor v Fielding & Anor

Summary judgment is refused as defendants have a real prospect of defending claims regarding directors' duties and lawfulness of distribution; issues of solvency, validity of interim accounts, and relief under s.1157 Companies Act 2006 require determination at trial. Security for costs is granted as claimants are in insolvent liquidation and unable to pay defendants' costs absent appropriate insurance or indemnity.

Parties
Claimant: Burnden Holdings (UK) Ltd (In Liquidation); Claimant: Stephen John Hunt; Defendant: Gary John Fielding; Defendant: Sally Anne Fielding
Jurisdiction
England and Wales
Judgment Date
28 July 2017
Procedural Posture
Civil / Interlocutory Judgment on Summary Judgment and Security for Costs Applications
Outcome
Summary judgment application dismissed; security for costs application granted.
Legal Topics
Directors' Duties, Unlawful Distribution, Fiduciary Duty, Security for Costs, Summary Judgment, Limitation, Relief Under Companies Act, Interim Accounts
Company Law Insolvency Civil Procedure Directors' Duties Unlawful Distribution Fiduciary Duty Security for Costs Summary Judgment +3 more

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Parties

Burnden Holdings (UK) Ltd (In Liquidation)

Claimant

Stephen John Hunt

Claimant

Gary John Fielding

Defendant

Sally Anne Fielding

Defendant

Procedural Posture

Civil / Interlocutory Judgment on Summary Judgment and Security for Costs Applications

Legal Issues

  1. 1 Whether directors breached fiduciary duty by approving distribution when company was insolvent or of doubtful solvency
  2. 2 Whether distribution was unlawful for non-compliance with Companies Act 1985 s.263 and s.270
  3. 3 Whether interim accounts relied upon were valid under s.270(4) Companies Act 1985

Ratio Decidendi

Summary judgment is refused as defendants have a real prospect of defending claims regarding directors' duties and lawfulness of distribution; issues of solvency, validity of interim accounts, and relief under s.1157 Companies Act 2006 require determination at trial. Security for costs is granted as claimants are in insolvent liquidation and unable to pay defendants' costs absent appropriate insurance or indemnity.

Court Disposition

Summary judgment application dismissed; security for costs application granted.

Orders

  • Claimants' application for summary judgment dismissed.
  • Claimants to provide security for costs by way of adverse costs insurance policy or contractual indemnity from litigation funder, or equivalent, in sum of at least £790,000 plus VAT by specified date.