Reid v Ramlort [2002] EWHC 2416 (Ch) (15 November 2002)

Reid v Ramlort [2002] EWHC 2416 (Ch) (15 November 2002)

The value of consideration for a transaction at an undervalue under s.339 Insolvency Act 1986 is to be assessed as at the date of the transaction, with subsequent events admissible as evidence if they resolve uncertainties, but the actual value is a question of fact for the trial judge based on all evidence.

Citation
[2002] EWHC 2416 (Ch)
Parties
Applicant: Mr Reid; Respondent: Ramlort
Jurisdiction
England and Wales
Judgment Date
15 November 2002
Procedural Posture
Insolvency Application / Preliminary Issue Determination
Outcome
No determination of the preliminary issue; directions to be formulated for trial.
Legal Topics
Transaction at Undervalue, Assessment of Consideration, Use of Subsequent Events in Valuation
Insolvency Trusts Insurance Transaction at Undervalue Assessment of Consideration Use of Subsequent Events in Valuation

Case Brief

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Parties

Mr Reid

Applicant

Ramlort

Respondent

Procedural Posture

Insolvency Application / Preliminary Issue Determination

Legal Issues

  1. 1 Whether the value of consideration provided by Mr Thoars to Ramlort Ltd by the declaration of trust should be assessed taking into account subsequent events, specifically the deceased's liver transplant and death
  2. 2 Whether the assignment of the life insurance policy constituted a transaction at an undervalue under s.339 Insolvency Act 1986

Ratio Decidendi

The value of consideration for a transaction at an undervalue under s.339 Insolvency Act 1986 is to be assessed as at the date of the transaction, with subsequent events admissible as evidence if they resolve uncertainties, but the actual value is a question of fact for the trial judge based on all evidence.

Court Disposition

No determination of the preliminary issue; directions to be formulated for trial.

Orders

  • Counsel invited to formulate directions to expedite trial of the application.