BP v KP and NI (Financial Remedy Proceedings: Res Judicata)

BP v KP and NI (Financial Remedy Proceedings: Res Judicata)

The wife is not estopped from seeking a finding as to the date the agreement was formed at the final trial, nor from advancing her add-back argument, as the facts regarding the date of formation are not cardinal to the prior default judgment and the compromise did not constitute abandonment of her claim.

Parties
Petitioner: BP; Respondent: KP; 1st Intervener: NI; 2nd Intervener: OI
Jurisdiction
England and Wales
Judgment Date
26 October 2012
Procedural Posture
Financial Remedy Proceedings / Ruling on Preliminary Issues
Outcome
Wife is not barred from advancing arguments regarding the date of the agreement or add-back at the final hearing.
Legal Topics
Res Judicata, Add Back Doctrine, Financial Misconduct, Issue Estoppel, Cause of Action Estoppel
Family Law Civil Procedure Res Judicata Add Back Doctrine Financial Misconduct Issue Estoppel Cause of Action Estoppel

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Parties

BP

Petitioner

KP

Respondent

NI

1st Intervener

OI

2nd Intervener

Procedural Posture

Financial Remedy Proceedings / Ruling on Preliminary Issues

Legal Issues

  1. 1 Whether the wife is barred by res judicata from asserting collusive fraud or challenging the date of the agreement in financial remedy proceedings
  2. 2 Whether the wife is barred from running an add-back case regarding losses suffered from enforcement of the agreement

Ratio Decidendi

The wife is not estopped from seeking a finding as to the date the agreement was formed at the final trial, nor from advancing her add-back argument, as the facts regarding the date of formation are not cardinal to the prior default judgment and the compromise did not constitute abandonment of her claim.

Court Disposition

Wife is not barred from advancing arguments regarding the date of the agreement or add-back at the final hearing.

Orders

  • Wife's application to set aside the default judgment in the Chancery Division will be dismissed as part of the compromise.
  • NI will keep the sum received on compulsory redemption in March 2012.