Cooper v PRG Powerhouse Ltd & Ors

Cooper v PRG Powerhouse Ltd & Ors

The payment of £34,239 by Simon Cooper to the company was impressed with a purpose trust for the payment to Godfrey Davis. The arrangement and correspondence established that the money was not at the free disposal of the company. The trust failed when the company entered administration before payment was made, and the sum is repayable to Simon Cooper, being traceable in the company's accounts.

Parties
Applicant: Simon Cooper; First Respondent: PRG Powerhouse Limited (in creditors’ voluntary liquidation); Second Respondent: Martha Thompson; Third Respondent: Simon James Michaels; Fourth Respondent: James Joseph Bannon
Jurisdiction
England and Wales
Judgment Date
14 March 2008
Procedural Posture
Insolvency Application / Judgment
Outcome
Application allowed
Legal Topics
Purpose Trusts, Equitable Tracing, Fiduciary Duties, Liquidation, Administration of Companies
Insolvency Law Trusts Law Purpose Trusts Equitable Tracing Fiduciary Duties Liquidation Administration of Companies

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Parties

Simon Cooper

Applicant

PRG Powerhouse Limited (in creditors’ voluntary liquidation)

First Respondent

Martha Thompson

Second Respondent

Simon James Michaels

Third Respondent

James Joseph Bannon

Fourth Respondent

Procedural Posture

Insolvency Application / Judgment

Legal Issues

  1. 1 Whether the payment by Simon Cooper to the company was subject to a purpose trust
  2. 2 Whether the payment is traceable in the hands of the administrators or liquidators

Ratio Decidendi

The payment of £34,239 by Simon Cooper to the company was impressed with a purpose trust for the payment to Godfrey Davis. The arrangement and correspondence established that the money was not at the free disposal of the company. The trust failed when the company entered administration before payment was made, and the sum is repayable to Simon Cooper, being traceable in the company's accounts.

Court Disposition

Application allowed

Orders

  • Declaration that the sum of £34,239 paid by Simon Cooper to the company was held on trust for the purpose of paying Godfrey Davis and, the purpose having failed, is repayable to Simon Cooper.
  • Direction that the liquidators do cause the company to repay Simon Cooper the sum of £34,239.