Bataillon & Anor v Shone & Anor [2017] EWHC 3906 (Comm) (06 February 2017)

Bataillon & Anor v Shone & Anor [2017] EWHC 3906 (Comm) (06 February 2017)

Transfers of beneficial interests in properties and other assets from Mr Shone to Mrs Shone were transactions at an undervalue intended to prejudice creditors; Mrs Shone was not a reliable witness and did not establish constructive trust claims beyond 50% interest; relief under s423 is granted to claimants, with a limited carve-out for the daughter Camille as an innocent party, reduced due to lower sale proceeds.

Citation
[2017] EWHC 3906 (Comm)
Parties
Claimant: Bataillon; Claimant: Marquaire; Defendant: Shone; Defendant: Mrs Shone
Jurisdiction
England and Wales
Judgment Date
06 February 2017
Procedural Posture
Commercial Claim Under Insolvency Act 1986 S423 / Post Judgment Application to Vary Order Due to Changed Circumstances
Outcome
Application to vary order granted in part; relief under s423 maintained with reduced carve-out for Camille.
Legal Topics
Transactions at an Undervalue, Constructive Trust, Relief Under Insolvency Act 1986 S423, Variation of Court Orders, Beneficial Interest in Property
Insolvency Property Equity and Trusts Transactions at an Undervalue Constructive Trust Relief Under Insolvency Act 1986 S423 Variation of Court Orders Beneficial Interest in Property

Case Brief

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Parties

Bataillon

Claimant

Marquaire

Claimant

Shone

Defendant

Mrs Shone

Defendant

Procedural Posture

Commercial Claim Under Insolvency Act 1986 S423 / Post Judgment Application to Vary Order Due to Changed Circumstances

Legal Issues

  1. 1 Whether transfers of property/assets from Mr Shone to Mrs Shone were transactions at an undervalue under s423 Insolvency Act 1986
  2. 2 Whether Mrs Shone was complicit or acted in good faith
  3. 3 Whether the relief granted should be varied due to lower than expected sale proceeds of properties

Ratio Decidendi

Transfers of beneficial interests in properties and other assets from Mr Shone to Mrs Shone were transactions at an undervalue intended to prejudice creditors; Mrs Shone was not a reliable witness and did not establish constructive trust claims beyond 50% interest; relief under s423 is granted to claimants, with a limited carve-out for the daughter Camille as an innocent party, reduced due to lower sale proceeds.

Court Disposition

Application to vary order granted in part; relief under s423 maintained with reduced carve-out for Camille.

Orders

  • Claimants to receive 50% of net equity in High Trees, Sheet Street, and Budleigh Salterton after sale.
  • Mrs Shone to pay residual debt of £376,000 plus interest and costs of £117,000 to claimants, secured on sale proceeds.