Bataillon & Anor v Shone & Anor

Bataillon & Anor v Shone & Anor

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 statutory purpose of putting assets beyond the reach of creditors, satisfying s423 Insolvency Act 1986. No sufficient consideration was provided, and the evidence did not support Mrs Shone's case of a prior agreement or innocent change of position. Relief under s423 was granted, subject to a deduction for the benefit of the child Camille.

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 / Judgment After Trial
Outcome
Claimants succeed on s423 claims; relief granted subject to deduction for child.
Legal Topics
Transactions at Undervalue, Asset Transfers to Defeat Creditors, Constructive Trusts, Nominee Arrangements, Freezing Orders, Discretionary Relief Under Insolvency Act
Insolvency Civil Procedure Trusts and Equity Transactions at Undervalue Asset Transfers to Defeat Creditors Constructive Trusts Nominee Arrangements Freezing Orders +1 more

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Parties

Marc Bataillon

Claimant

Cyril Marquaire

Claimant

Michael Shone

Defendant

Estlyn Sharon Shone

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether transfers of assets by 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 statutory purpose of putting assets beyond the reach of creditors
  3. 3 Whether Estlyn Sharon Shone held 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 statutory purpose of putting assets beyond the reach of creditors, satisfying s423 Insolvency Act 1986. No sufficient consideration was provided, and the evidence did not support Mrs Shone's case of a prior agreement or innocent change of position. Relief under s423 was granted, subject to a deduction for the benefit of the child Camille.

Court Disposition

Claimants succeed on s423 claims; relief granted subject to deduction for child.

Orders

  • Claimants to receive 50% of net equity in High Trees after sale (approx £227,500)
  • Claimants to receive 50% of net equity in Sheet Street and Budleigh Salterton after sale (approx £462,500)