LF2 Ltd v Supperstone & Anor (Administrators of Pennyfeathers Ltd) [2018] EWHC 1776 (Ch) (11 July 2018)

LF2 Ltd v Supperstone & Anor (Administrators of Pennyfeathers Ltd) [2018] EWHC 1776 (Ch) (11 July 2018)

The appeal was dismissed because LF2 Ltd failed to challenge the Deputy Judge's finding that the administrators' refusal to assign the claim did not unfairly harm LF2 or the creditors, which was a necessary element for relief under paragraph 74 of schedule B1. Although the Deputy Judge was wrong to find the claim against Fieldfisher LLP frivolous or vexatious, this did not affect the outcome as there was no appeal ground challenging the finding of no unfair harm.

Citation
[2018] EWHC 1776 (Ch)
Parties
Appellant: LF2 Ltd; Respondent (joint Administrator of Pennyfeathers Ltd): Mark Supperstone; Respondent (joint Administrator of Pennyfeathers Ltd): Henry Shinners; Interested Party (former Solicitors to Pennyfeathers Ltd): Fieldfisher LLP
Jurisdiction
England and Wales
Judgment Date
11 July 2018
Procedural Posture
Appeal (insolvency) / Judgment on Appeal From Order Dismissing Application Under Paragraph 74 of Schedule B1 to the Insolvency Act 1986
Outcome
Appeal dismissed
Legal Topics
Assignment of Causes of Action, Administrators' Duties, Frivolous or Vexatious Claims, Unfair Harm to Creditors, Costs Orders, Conditional Fee Agreements (cfa)
Insolvency Company Law Civil Procedure Assignment of Causes of Action Administrators' Duties Frivolous or Vexatious Claims Unfair Harm to Creditors Costs Orders +1 more

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Parties

LF2 Ltd

Appellant

Mark Supperstone

Respondent (joint Administrator of Pennyfeathers Ltd)

Henry Shinners

Respondent (joint Administrator of Pennyfeathers Ltd)

Fieldfisher LLP

Interested Party (former Solicitors to Pennyfeathers Ltd)

Procedural Posture

Appeal (insolvency) / Judgment on Appeal From Order Dismissing Application Under Paragraph 74 of Schedule B1 to the Insolvency Act 1986

Legal Issues

  1. 1 Whether the administrators' refusal to assign a cause of action against Fieldfisher LLP was unfairly harmful to LF2 Ltd as a creditor under paragraph 74 of schedule B1 to the Insolvency Act 1986
  2. 2 Whether the proposed claim against Fieldfisher LLP was frivolous or vexatious
  3. 3 Whether the Deputy Judge was correct to order LF2 Ltd to pay Fieldfisher LLP's costs

Ratio Decidendi

The appeal was dismissed because LF2 Ltd failed to challenge the Deputy Judge's finding that the administrators' refusal to assign the claim did not unfairly harm LF2 or the creditors, which was a necessary element for relief under paragraph 74 of schedule B1. Although the Deputy Judge was wrong to find the claim against Fieldfisher LLP frivolous or vexatious, this did not affect the outcome as there was no appeal ground challenging the finding of no unfair harm.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; order of Deputy ICC Judge Barnett upheld
  • LF2 Ltd to pay the costs of the administrators and Fieldfisher LLP as previously ordered