Moriarty & Anor v Various Customers of BA Peters plc (in administration)

Moriarty & Anor v Various Customers of BA Peters plc (in administration)

Title to the vessel passed to BW upon payment on 10 August 2007 as the dealer agreement implied authority to sell as agent for Sealine. The arrangement between BW and Sealine did not create a trust over the proceeds; clause 8 of the dealer agreement created an unregistered charge, which is void against creditors. Sealine is a general creditor and cannot trace into the client account.

Parties
Administrator: Jane Bronwen Moriarty; Administrator: Myles Antony Halley; Company: BA Peters plc (in administration); Customer: Burton Waters Marina Limited; Manufacturer: Sealine International Limited; Respondent: Various customers of BA Peters plc (in administration)
Jurisdiction
England and Wales
Judgment Date
22 July 2008
Procedural Posture
Insolvency/administration Application / Post Judgment Review and Directions
Outcome
Sealine joined as a party; Sealine is a general creditor and not entitled to trace into the client account; costs awarded to Sealine limited to the issue of the ownership of the £194,953.65.
Legal Topics
Passing of Title, Retention of Title, Trusts Over Proceeds of Sale, Unregistered Charges, Agency, Sale of Goods
Insolvency Commercial Law Company Law Passing of Title Retention of Title Trusts Over Proceeds of Sale Unregistered Charges Agency +1 more

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Parties

Jane Bronwen Moriarty

Administrator

Myles Antony Halley

Administrator

BA Peters plc (in administration)

Company

Burton Waters Marina Limited

Customer

Sealine International Limited

Manufacturer

Various customers of BA Peters plc (in administration)

Respondent

Procedural Posture

Insolvency/administration Application / Post Judgment Review and Directions

Legal Issues

  1. 1 Whether title to the vessel passed to Burton Waters Marina Limited (BW) upon payment
  2. 2 Whether Sealine International Limited retained title to the vessel
  3. 3 Whether the proceeds of sale (£194,953.65) held in the client account are held on trust for Sealine or are available to general creditors

Ratio Decidendi

Title to the vessel passed to BW upon payment on 10 August 2007 as the dealer agreement implied authority to sell as agent for Sealine. The arrangement between BW and Sealine did not create a trust over the proceeds; clause 8 of the dealer agreement created an unregistered charge, which is void against creditors. Sealine is a general creditor and cannot trace into the client account.

Court Disposition

Sealine joined as a party; Sealine is a general creditor and not entitled to trace into the client account; costs awarded to Sealine limited to the issue of the ownership of the £194,953.65.

Orders

  • Sealine International Limited is joined as a party to the application.
  • Sealine is a general creditor of BA Peters plc and not entitled to trace its claim into the client account.