Lomax Leisure Ltd v Miller & Anor

Liquidators are not personally liable to pay declared dividends to individual creditors; cheques issued are not enforceable as cash instruments due to lack of consideration; remedy for non-payment is via court order, not damages or compensation; stopping payment was proper and caused no actionable loss.

Parties: Claimant: Lomax Leisure Limited (in liquidation); Defendant: Nicholas John Miller; Defendant: Timothy James Bramston
Jurisdiction: England and Wales
Judgment Date: 12 October 2007
Procedural Posture: Civil / Final Judgment
Outcome: claim dismissed
Legal Topics: Liquidator Duties, Dividend Declaration, Cheque Liability, Members' Voluntary Liquidation, Statutory Interpretation

Insolvency Company Law Liquidator Duties Dividend Declaration Cheque Liability Members' Voluntary Liquidation Statutory Interpretation

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Parties

Lomax Leisure Limited (in liquidation)

Claimant

Nicholas John Miller

Defendant

Timothy James Bramston

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

1 Whether liquidators are personally liable to pay declared dividends to creditors
2 Whether creditors have a personal claim for damages or compensation for non-payment of declared dividends
3 Whether cheques issued by liquidators are enforceable as cash instruments

Ratio Decidendi

Court Disposition

claim dismissed

Orders

Claimant to pay defendants' costs to be assessed on standard basis in default of agreement
Provisional order for costs stands unless further submissions are made by 19/10/07