LF2 Ltd v Supperstone & Anor (Administrators of Pennyfeathers Ltd)

LF2 Ltd v Supperstone & Anor (Administrators of Pennyfeathers Ltd)

The appeal was dismissed because LF2 failed to challenge the Deputy Judge's finding that the administrators' refusal to assign the cause of action did not unfairly harm LF2's interests as a creditor. Although the Deputy Judge was wrong to find the claim against Fieldfisher frivolous or vexatious, this did not affect the outcome as there was no ground of appeal challenging the finding of no unfair harm. The order for costs in favour of Fieldfisher was upheld as the relevant procedural rules did not require Fieldfisher to be made a party for costs purposes in this insolvency context.

Parties
Appellant: LF2 Ltd; Respondent (joint Administrator of Pennyfeathers Ltd): Mark Supperstone; Respondent (joint Administrator of Pennyfeathers Ltd): Henry Shinners; Interested Party / Former Solicitors: Fieldfisher LLP
Jurisdiction
England and Wales
Judgment Date
11 July 2018
Procedural Posture
Civil Appeal / Judgment on Appeal From Deputy ICC Judge Barnett's 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 and Vexatious Claims, Costs Orders, Standing of Creditors, Court's Control Over Insolvency Officeholders
Insolvency Law Civil Procedure Assignment of Causes of Action Administrators' Duties Frivolous and Vexatious Claims Costs Orders Standing of Creditors Court's Control Over Insolvency Officeholders

Case Brief

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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

Procedural Posture

Civil Appeal / Judgment on Appeal From Deputy ICC Judge Barnett's Order Dismissing Application Under Paragraph 74 of Schedule B1 to the Insolvency Act 1986

Legal Issues

  1. 1 Whether the claim against Fieldfisher LLP was frivolous or vexatious
  2. 2 Whether the administrators' refusal to assign the cause of action unfairly harmed LF2 as a creditor
  3. 3 Whether the Deputy Judge erred in ordering LF2 to pay Fieldfisher's costs without making Fieldfisher a party to the application

Ratio Decidendi

The appeal was dismissed because LF2 failed to challenge the Deputy Judge's finding that the administrators' refusal to assign the cause of action did not unfairly harm LF2's interests as a creditor. Although the Deputy Judge was wrong to find the claim against Fieldfisher frivolous or vexatious, this did not affect the outcome as there was no ground of appeal challenging the finding of no unfair harm. The order for costs in favour of Fieldfisher was upheld as the relevant procedural rules did not require Fieldfisher to be made a party for costs purposes in this insolvency context.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed; Deputy Judge's order stands
  • Costs of the application and appeal to be dealt with following hand down of judgment