Watchorn v Jupiter Industries Ltd [2014] EWHC 3003 (Ch) (11 July 2014)

Watchorn v Jupiter Industries Ltd [2014] EWHC 3003 (Ch) (11 July 2014)

The assignment of trademarks by Husky Group Limited to Jupiter Industries Limited for £1 was a transaction at an undervalue and was entered into for the substantial purpose of putting assets beyond the reach of creditors, contrary to section 423 of the Insolvency Act 1986. Jupiter failed to prove that Husky Group Limited was solvent at the material time, so relief is also granted under section 238. The appropriate remedy is an award of £360,000, the going concern value of the trademarks, plus interest and indemnity costs.

Citation
[2014] EWHC 3003 (Ch)
Parties
Claimant: David John Watchorn; Defendant: Jupiter Industries Limited
Jurisdiction
England and Wales
Judgment Date
11 July 2014
Procedural Posture
Insolvency Application / Judgment After Trial
Outcome
Claim allowed
Legal Topics
Transaction at Undervalue, Transactions Defrauding Creditors, Assignment of Trademarks, Corporate Governance, Liquidation, Section 238 Insolvency Act 1986, Section 423 Insolvency Act 1986
Insolvency Company Law Transaction at Undervalue Transactions Defrauding Creditors Assignment of Trademarks Corporate Governance Liquidation Section 238 Insolvency Act 1986 +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 5 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

David John Watchorn

Claimant

Jupiter Industries Limited

Defendant

Procedural Posture

Insolvency Application / Judgment After Trial

Legal Issues

  1. 1 Whether the assignment of trademarks by Husky Group Limited to Jupiter Industries Limited was a transaction at an undervalue under section 238 of the Insolvency Act 1986
  2. 2 Whether the assignment was a transaction defrauding creditors under section 423 of the Insolvency Act 1986
  3. 3 Whether Husky Group Limited was insolvent at the material time

Ratio Decidendi

The assignment of trademarks by Husky Group Limited to Jupiter Industries Limited for £1 was a transaction at an undervalue and was entered into for the substantial purpose of putting assets beyond the reach of creditors, contrary to section 423 of the Insolvency Act 1986. Jupiter failed to prove that Husky Group Limited was solvent at the material time, so relief is also granted under section 238. The appropriate remedy is an award of £360,000, the going concern value of the trademarks, plus interest and indemnity costs.

Court Disposition

Claim allowed

Orders

  • Jupiter Industries Limited to pay £360,000 to the liquidator of Husky Group Limited
  • Statutory interest at 3% above base from 11 November 2008 to 9 January 2014, and 10% above base thereafter to judgment