London Capital & Finance Plc & Ors v Thomson & Ors [2024] EWHC 1684 (Ch) (24 June 2024)

London Capital & Finance Plc & Ors v Thomson & Ors [2024] EWHC 1684 (Ch) (24 June 2024)

The claimants' application for a unilateral notice was not permissible under the Land Registration Act 2002 as their claim was to an interest under a trust of land, which cannot be protected by notice. The proprietary freezing injunction was granted because the fifth defendant failed to discharge the burden of showing he had no other assets to pay legal fees, and the balance of justice did not favour permitting use of the proceeds for legal fees or living expenses, especially as the trial had concluded and the defendant had already had professional representation.

Citation
[2024] EWHC 1684 (Ch)
Parties
Claimant: London Capital & Finance plc (in administration); Claimant: Finbarr O'Connell, Adam Stephens, Henry Shinners, Colin Hardman and Geoffrey Rowley (Joint Administrators of London Capital & Finance plc); Claimant: London Oil & Gas Limited (in administration); Claimant: Finbarr O'Connell, Adam Stephens, Colin Hardman and Lane Bednash (Joint Administrators of London Oil & Gas Limited); Defendant: Michael Andrew Thomson; Defendant: Simon Hume-Kendall; Defendant: Elten Barker; Defendant: Spencer Golding; Defendant: Paul Careless; Defendant: Surge Financial Limited; Defendant: John Russell-Murphy; Defendant: Robert Sedgwick; Defendant: Grosvenor Park Intelligent Investments Limited; Defendant: Helen Hume-Kendall
Jurisdiction
England and Wales
Judgment Date
24 June 2024
Procedural Posture
Civil Chancery (business and Property Courts) / Post Trial, Applications for Proprietary Freezing Injunction and Withdrawal of Unilateral Notice
Outcome
Proprietary freezing injunction granted in terms sought by claimants; application for withdrawal of unilateral notice allowed.
Legal Topics
Proprietary Freezing Injunction, Unilateral Notice, Land Registration Act 2002, Constructive Trust, Fraudulent Trading, Dishonest Assistance, Asset Disclosure
Civil Procedure Insolvency Property Law Equity and Trusts Proprietary Freezing Injunction Unilateral Notice Land Registration Act 2002 Constructive Trust +3 more

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Parties

London Capital & Finance plc (in administration)

Claimant

Finbarr O'Connell, Adam Stephens, Henry Shinners, Colin Hardman and Geoffrey Rowley (Joint Administrators of London Capital & Finance plc)

Claimant

London Oil & Gas Limited (in administration)

Claimant

Finbarr O'Connell, Adam Stephens, Colin Hardman and Lane Bednash (Joint Administrators of London Oil & Gas Limited)

Claimant

Michael Andrew Thomson

Defendant

Simon Hume-Kendall

Defendant

Elten Barker

Defendant

Spencer Golding

Defendant

Paul Careless

Defendant

Surge Financial Limited

Defendant

John Russell-Murphy

Defendant

Robert Sedgwick

Defendant

Grosvenor Park Intelligent Investments Limited

Defendant

Helen Hume-Kendall

Defendant

Procedural Posture

Civil Chancery (business and Property Courts) / Post Trial, Applications for Proprietary Freezing Injunction and Withdrawal of Unilateral Notice

Legal Issues

  1. 1 Whether the claimants were entitled to apply for a unilateral notice under the Land Registration Act 2002 in respect of a proprietary claim to land
  2. 2 Whether a proprietary freezing injunction should be granted over the proceeds of sale of the fifth defendant's property
  3. 3 Whether the fifth defendant should be permitted to use the proceeds of sale to pay legal fees and living expenses

Ratio Decidendi

The claimants' application for a unilateral notice was not permissible under the Land Registration Act 2002 as their claim was to an interest under a trust of land, which cannot be protected by notice. The proprietary freezing injunction was granted because the fifth defendant failed to discharge the burden of showing he had no other assets to pay legal fees, and the balance of justice did not favour permitting use of the proceeds for legal fees or living expenses, especially as the trial had concluded and the defendant had already had professional representation.

Court Disposition

Proprietary freezing injunction granted in terms sought by claimants; application for withdrawal of unilateral notice allowed.

Orders

  • Proprietary freezing order granted over proceeds of sale of the property and other traceable assets; no release of funds for legal fees or living expenses.
  • Unilateral notice to be withdrawn from the property register.