1999/149 - Re PSD Enterprises and Barrett [1999] UR 149 (3 September 1999)

1999/149 - Re PSD Enterprises and Barrett [1999] UR 149 (3 September 1999)

The Court found that, given Miss Barrett's knowledge of the company's financial difficulties, the timing and circumstances of the payments, and her prior experience with insolvency, the requisite desire to improve her position as a creditor in the event of insolvency could be inferred. The payments were therefore voidable preferences.

Citation
[1999] UR 149
Parties
Appellant: Miss Phyllis Eileen Barrett; Respondent: The Viscount
Jurisdiction
Jersey
Judgment Date
03 September 1999
Procedural Posture
Insolvency Rehearing / Rehearing on Requisite Desire After Court of Appeal Remittal
Outcome
Payments to Miss Barrett set aside as voidable preferences.
Legal Topics
Voidable Preference, Requisite Desire, Director's Duties, Insolvency Proceedings
Insolvency Company Law Voidable Preference Requisite Desire Director's Duties Insolvency Proceedings

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Parties

Miss Phyllis Eileen Barrett

Appellant

The Viscount

Respondent

Procedural Posture

Insolvency Rehearing / Rehearing on Requisite Desire After Court of Appeal Remittal

Legal Issues

  1. 1 Whether Miss Barrett, in procuring payments to herself, had the requisite desire to improve her position as a creditor in the event of the company's insolvent liquidation

Ratio Decidendi

The Court found that, given Miss Barrett's knowledge of the company's financial difficulties, the timing and circumstances of the payments, and her prior experience with insolvency, the requisite desire to improve her position as a creditor in the event of insolvency could be inferred. The payments were therefore voidable preferences.

Court Disposition

Payments to Miss Barrett set aside as voidable preferences.

Orders

  • Payments made to Miss Barrett between 1 December 1994 and 5 January 1995 are voidable and must be repaid to the company.