Bataillon & Anor v Shone & Anor

Bataillon & Anor v Shone & Anor

The court found that asset transfers between Mr Shone and Mrs Shone were transactions at undervalue under section 423, Mrs Shone was not entitled to retain the entirety of the assets, and the relief sought by the claimants was granted, subject to a reduced carve-out for Camille due to changed circumstances (lower property sale values).

Parties
Claimant: Bataillon; Claimant: Marquaire; Defendant: Shone; Defendant: Mrs Shone
Jurisdiction
England and Wales
Judgment Date
06 February 2017
Procedural Posture
Civil / Post Judgment Variation of Order
Outcome
Order varied to reduce carve-out for Camille from £100,000 to £30,000; claimants to receive 50% of net equity in properties and payment of residual debt and costs.
Legal Topics
Transactions at Undervalue, Section 423 Insolvency Act 1986, Constructive Trust, Beneficial Interest, Variation of Court Order
Insolvency Property Trusts Transactions at Undervalue Section 423 Insolvency Act 1986 Constructive Trust Beneficial Interest Variation of Court Order

Case Brief

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Parties

Bataillon

Claimant

Marquaire

Claimant

Shone

Defendant

Mrs Shone

Defendant

Procedural Posture

Civil / Post Judgment Variation of Order

Legal Issues

  1. 1 Whether asset transfers between Mr Shone and Mrs Shone were transactions at undervalue under section 423 Insolvency Act 1986
  2. 2 Whether Mrs Shone was entitled to retain assets for herself and her daughter Camille
  3. 3 Whether the original order should be varied due to changed circumstances (lower property sale values)

Ratio Decidendi

The court found that asset transfers between Mr Shone and Mrs Shone were transactions at undervalue under section 423, Mrs Shone was not entitled to retain the entirety of the assets, and the relief sought by the claimants was granted, subject to a reduced carve-out for Camille due to changed circumstances (lower property sale values).

Court Disposition

Order varied to reduce carve-out for Camille from £100,000 to £30,000; claimants to receive 50% of net equity in properties and payment of residual debt and costs.

Orders

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