Bataillon & Anor v Shone & Anor [2016] EWHC 1174 (QB) (20 May 2016)

Bataillon & Anor v Shone & Anor [2016] EWHC 1174 (QB) (20 May 2016)

The court found that the transfers of properties and other assets from Michael Shone to Estlyn Sharon Shone were at an undervalue and made with the real and substantial purpose of putting assets beyond the reach of creditors, contrary to s423 Insolvency Act 1986. The evidence did not support Mrs Shone's claim of consideration or prior agreement, and the beneficial ownership of the assets was with Mr Shone. The nominee argument was academic given the findings under s423.

Citation
[2016] EWHC 1174
Parties
Claimant: Marc Bataillon; Claimant: Cyril Marquaire; Defendant: Michael Shone; Defendant: Estlyn Sharon Shone
Jurisdiction
England and Wales
Judgment Date
20 May 2016
Procedural Posture
Civil (insolvency/asset Recovery) / Judgment After Trial
Outcome
Claim for relief under s423 Insolvency Act 1986 succeeded against Estlyn Sharon Shone.
Legal Topics
Transactions at Undervalue, Fraudulent Conveyance, Beneficial Ownership, Nominee Arrangements, Section 423 Insolvency Act 1986
Insolvency Asset Recovery Trusts and Equity Transactions at Undervalue Fraudulent Conveyance Beneficial Ownership Nominee Arrangements Section 423 Insolvency Act 1986

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 5 Authorities cited 13 Party arguments 2 Amounts and remedies 6
Sign in to unlock

Parties

Marc Bataillon

Claimant

Cyril Marquaire

Claimant

Michael Shone

Defendant

Estlyn Sharon Shone

Defendant

Procedural Posture

Civil (insolvency/asset Recovery) / Judgment After Trial

Legal Issues

  1. 1 Whether transfers of assets from Michael Shone to Estlyn Sharon Shone were transactions at an undervalue under s423 Insolvency Act 1986
  2. 2 Whether the transfers were made with the purpose of putting assets beyond the reach of creditors
  3. 3 Whether Estlyn Sharon Shone holds assets as nominee for Michael Shone

Ratio Decidendi

The court found that the transfers of properties and other assets from Michael Shone to Estlyn Sharon Shone were at an undervalue and made with the real and substantial purpose of putting assets beyond the reach of creditors, contrary to s423 Insolvency Act 1986. The evidence did not support Mrs Shone's claim of consideration or prior agreement, and the beneficial ownership of the assets was with Mr Shone. The nominee argument was academic given the findings under s423.

Court Disposition

Claim for relief under s423 Insolvency Act 1986 succeeded against Estlyn Sharon Shone.

Orders

  • Transfers of properties and assets to Estlyn Sharon Shone set aside to the extent of Michael Shone's beneficial interest (50%) and/or orders for payment to Claimants to restore position as if transactions had not occurred.