Singla v Hedman & Ors

Singla v Hedman & Ors

Mr Hedman is liable for wrongful trading as he committed NMD to the PSA knowing or ought to have known there was no reasonable prospect of avoiding insolvent liquidation. The OPL was a partial assignment of copyright to NMD, not validly terminated or varied by the forged documents or alleged oral agreement. GTH infringed NMD's copyright by producing a film based on the screenplay. Stonewood had authority to grant the OPL; if not, it is liable for breach of warranty.

Parties
Applicant: Surjit Singla; First Respondent: Thomas Hedman; Second Respondent: Gone to Hell Limited; Third Respondent: Stonewood Communications BV
Jurisdiction
England and Wales
Judgment Date
28 April 2010
Procedural Posture
Civil (company/commercial) / Judgment After Trial on Liability
Outcome
Judgment for Applicant (Liquidator) on liability; relief to be determined after further submissions
Legal Topics
Wrongful Trading, Copyright Infringement, Breach of Director's Duties, Forgery of Documents, Partial Assignment of Copyright
Insolvency Company Law Intellectual Property Wrongful Trading Copyright Infringement Breach of Director's Duties Forgery of Documents Partial Assignment of Copyright

Case Brief

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Parties

Surjit Singla

Applicant

Thomas Hedman

First Respondent

Gone to Hell Limited

Second Respondent

Stonewood Communications BV

Third Respondent

Procedural Posture

Civil (company/commercial) / Judgment After Trial on Liability

Legal Issues

  1. 1 Whether Mr Hedman is liable for wrongful trading under section 214 Insolvency Act 1986
  2. 2 Whether the OPL constituted a partial assignment of copyright to NMD
  3. 3 Whether GTH infringed NMD's copyright under the OPL

Ratio Decidendi

Mr Hedman is liable for wrongful trading as he committed NMD to the PSA knowing or ought to have known there was no reasonable prospect of avoiding insolvent liquidation. The OPL was a partial assignment of copyright to NMD, not validly terminated or varied by the forged documents or alleged oral agreement. GTH infringed NMD's copyright by producing a film based on the screenplay. Stonewood had authority to grant the OPL; if not, it is liable for breach of warranty.

Court Disposition

Judgment for Applicant (Liquidator) on liability; relief to be determined after further submissions

Orders

  • Declaration that Mr Hedman is liable for wrongful trading under section 214 Insolvency Act 1986
  • Declaration that the OPL is a partial assignment of copyright to NMD and remains in force