In re Guidon Invs. Ltd. v [1978] JLR 29 (16 February 1978)

In re Guidon Invs. Ltd. v [1978] JLR 29 (16 February 1978)

The court held that the valuation of a defaulting stockbroker's obligations to a client in bankruptcy is to be made at the time the default occurs with intent to deny the client's rights, such as failure to buy securities, reinvest as instructed, or unauthorized sale.

Citation
[1978] JLR 29
Parties
Defaulting Stockbroker: Guidon Investments Ltd.; Creditor(s): Unnamed client(s)
Jurisdiction
Jersey
Judgment Date
16 February 1978
Procedural Posture
Bankruptcy (desastre) / Valuation of Debt
Outcome
Guidance provided on valuation timing; no specific order detailed.
Legal Topics
Valuation of Debt, Stockbroker Obligations, Client Rights in Insolvency
Bankruptcy Insolvency Commercial Law Valuation of Debt Stockbroker Obligations Client Rights in Insolvency

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Parties

Guidon Investments Ltd.

Defaulting Stockbroker

Unnamed client(s)

Creditor(s)

Procedural Posture

Bankruptcy (desastre) / Valuation of Debt

Legal Issues

  1. 1 At what point should the obligations of a defaulting stockbroker to a client be valued in bankruptcy proceedings?

Ratio Decidendi

The court held that the valuation of a defaulting stockbroker's obligations to a client in bankruptcy is to be made at the time the default occurs with intent to deny the client's rights, such as failure to buy securities, reinvest as instructed, or unauthorized sale.

Court Disposition

Guidance provided on valuation timing; no specific order detailed.