Armstrong v Berrymans Lace Mawer LLB (t/a BLM) & Anor

Armstrong v Berrymans Lace Mawer LLB (t/a BLM) & Anor

The administrators, as successors to Transform, are entitled to delivery up of the joint retainer files under section 234 of the Insolvency Act 1986. HJI, as assignee of Transform’s claims, stands in the same position as the administrators and is entitled to access the files for the purpose of pursuing the assigned claims, including instructing solicitors. Joint privilege is not overridden, but the assignment does not put HJI in a better position than Transform; both are subject to the joint privilege with Travelers. Appropriate undertakings and information barriers by HJI and Hugh James suffice to protect Travelers’ interests. Disclosure to HJI and its solicitors is permitted for the...

Parties
Applicant: Martin Charles Armstrong; Applicant: James Edmund Patchett; First Respondent: Berrymans Lace Mawer LLP (trading as BLM); Second Respondent: Travelers Insurance Company Limited
Jurisdiction
England and Wales
Judgment Date
31 July 2020
Procedural Posture
Insolvency Application / Judgment on Issue of Disclosure of Joint Retainer Files
Outcome
Issue determined in favour of the administrators, subject to undertakings.
Legal Topics
Joint Privilege, Assignment of Claims, Disclosure of Documents, Solicitor Client Relationship, Section 234 Insolvency Act 1986, Section 236 Insolvency Act 1986
Insolvency Law Legal Professional Privilege Joint Privilege Assignment of Claims Disclosure of Documents Solicitor Client Relationship Section 234 Insolvency Act 1986 Section 236 Insolvency Act 1986

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Parties

Martin Charles Armstrong

Applicant

James Edmund Patchett

Applicant

Berrymans Lace Mawer LLP (trading as BLM)

First Respondent

Travelers Insurance Company Limited

Second Respondent

Procedural Posture

Insolvency Application / Judgment on Issue of Disclosure of Joint Retainer Files

Legal Issues

  1. 1 Whether joint privilege in solicitor files prevents administrators from disclosing files to assignee and its solicitors
  2. 2 Whether sections 234 and 236 of the Insolvency Act 1986 override privilege
  3. 3 Whether undertakings and information barriers suffice to protect privilege

Ratio Decidendi

The administrators, as successors to Transform, are entitled to delivery up of the joint retainer files under section 234 of the Insolvency Act 1986. HJI, as assignee of Transform’s claims, stands in the same position as the administrators and is entitled to access the files for the purpose of pursuing the assigned claims, including instructing solicitors. Joint privilege is not overridden, but the assignment does not put HJI in a better position than Transform; both are subject to the joint privilege with Travelers. Appropriate undertakings and information barriers by HJI and Hugh James suffice to protect Travelers’ interests. Disclosure to HJI and its solicitors is permitted for the...

Court Disposition

Issue determined in favour of the administrators, subject to undertakings.

Orders

  • Joint retainer files may be disclosed to HJI and its solicitors (Hugh James) for the purpose of pursuing the assigned claims, subject to undertakings and information barriers as specified.
  • HJI and Hugh James to provide undertakings not to use the files for any other purpose, not to accept further PIP instructions, not to pass information to GLO claimants, and to implement information barriers.