Mayhew v King & Ors

Mayhew v King & Ors

Clause 11 of the Settlement Agreement is void as it offends the anti-deprivation principle by depriving Milbank's insolvent estate of the benefit of the indemnity; Chaucer, as assignee, is entitled to enforce the indemnity provisions against Towergate.

Parties
Claimant: Justin Mayhew; Defendant: Phillip King; Defendant: Milbank Trucks Limited; Third Party/part 20 Claimant: Chaucer Insurance Plc; Part 20 Defendant: Towergate Stafford Knight Company Limited (now Folgate London Market Limited); Part 20 Defendant: Towergate Partnership Limited
Jurisdiction
England and Wales
Judgment Date
20 May 2010
Procedural Posture
Civil (part 20 Proceedings) / Judgment After Trial
Outcome
For the applicant (Chaucer); clause 11 struck down as void.
Legal Topics
Anti Deprivation Principle, Assignment of Contractual Rights, Settlement Agreements, Insolvency Administration
Insolvency Law Contract Law Anti Deprivation Principle Assignment of Contractual Rights Settlement Agreements Insolvency Administration

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 3 Authorities cited 10 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Justin Mayhew

Claimant

Phillip King

Defendant

Milbank Trucks Limited

Defendant

Chaucer Insurance Plc

Third Party/part 20 Claimant

Towergate Stafford Knight Company Limited (now Folgate London Market Limited)

Part 20 Defendant

Towergate Partnership Limited

Part 20 Defendant

Procedural Posture

Civil (part 20 Proceedings) / Judgment After Trial

Legal Issues

  1. 1 Does clause 11 of the Settlement Agreement offend the anti-deprivation principle and is it void?
  2. 2 Can Chaucer, as assignee, enforce the indemnity provisions against Towergate despite Milbank's insolvency?

Ratio Decidendi

Clause 11 of the Settlement Agreement is void as it offends the anti-deprivation principle by depriving Milbank's insolvent estate of the benefit of the indemnity; Chaucer, as assignee, is entitled to enforce the indemnity provisions against Towergate.

Court Disposition

For the applicant (Chaucer); clause 11 struck down as void.

Orders

  • Declarations and orders granted in favour of Chaucer against Towergate (Folgate London Market Limited).