Random House UK Ltd v Allason & Ors

Random House UK Ltd v Allason & Ors

The evidence establishes overwhelmingly that 6 Burton Mews is not and has never been an asset of the trust; the declaration of trust and draft contract naming the trust as purchaser were fabricated to prevent enforcement of costs orders. The gift of £150,000 to the trust was made at least in part to put assets beyond the reach of Lloyd’s creditors, satisfying the purpose requirement of s.423 Insolvency Act 1986. Random House qualifies as a victim under s.423, and the claim is not statute-barred.

Parties
Claimant: Random House UK Limited; Defendant: Julian Allason; Defendant: Paul Hanson; Defendant: Thomas Cheplick; Defendant: Rupert Allason
Jurisdiction
England and Wales
Judgment Date
11 December 2008
Procedural Posture
Civil / Judgment
Outcome
Claim allowed in part; 6 Burton Mews not held for trust; gift of £150,000 to trust liable to be set aside under s.423 Insolvency Act 1986.
Legal Topics
Enforcement of Costs Orders, Beneficial Ownership, Declaration of Trust, Transactions at Undervalue, Section 423 Insolvency Act, Limitation Periods
Insolvency Trusts and Equity Civil Procedure Enforcement of Costs Orders Beneficial Ownership Declaration of Trust Transactions at Undervalue Section 423 Insolvency Act +1 more

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Parties

Random House UK Limited

Claimant

Julian Allason

Defendant

Paul Hanson

Defendant

Thomas Cheplick

Defendant

Rupert Allason

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether 6 Burton Mews is beneficially owned by the DC Allason Trust or by WRL
  2. 2 Whether the gift of £150,000 to the trust is liable to be set aside under s.423 Insolvency Act 1986
  3. 3 Whether Random House qualifies as a victim under s.423

Ratio Decidendi

The evidence establishes overwhelmingly that 6 Burton Mews is not and has never been an asset of the trust; the declaration of trust and draft contract naming the trust as purchaser were fabricated to prevent enforcement of costs orders. The gift of £150,000 to the trust was made at least in part to put assets beyond the reach of Lloyd’s creditors, satisfying the purpose requirement of s.423 Insolvency Act 1986. Random House qualifies as a victim under s.423, and the claim is not statute-barred.

Court Disposition

Claim allowed in part; 6 Burton Mews not held for trust; gift of £150,000 to trust liable to be set aside under s.423 Insolvency Act 1986.

Orders

  • Declaration that WRL is the beneficial owner of 6 Burton Mews and enforcement of costs orders against the property permitted.
  • Finding that the gift of £150,000 to the trust is a transaction at undervalue under s.423 Insolvency Act 1986; appropriate remedy to be determined after further submissions.