The Winding up Board of Landsbanki Islands HF v Mills & Ors [2010] ScotCS CSOH_100 (20 July 2010)

The Winding up Board of Landsbanki Islands HF v Mills & Ors [2010] ScotCS CSOH_100 (20 July 2010)

The court held that the rejection of Heritable's claims in the Icelandic winding up of Landsbanki is binding in the UK administration of Heritable under Regulation 5 of the 2004 Regulations. The Icelandic winding up is an EEA insolvency measure, and decisions made therein regarding the existence and quantum of claims must be given effect in the UK as if they were part of UK insolvency law. Therefore, the Administrators of Heritable are bound to recognise the Icelandic decision, and Heritable's claims cannot be used to set off Landsbanki's claim in the UK administration. The Icelandic decision is also capable of founding a plea of res judicata in Scotland regarding the merits of...

Citation
[2010] ScotCS CSOH_100
Parties
Noters: The Winding-Up Board of Landsbanki Islands HF; Respondents: Margaret Mills, Patrick Brazzill, Thomas Burton and Alan Bloom, the Joint Administrators of Heritable Bank Plc
Jurisdiction
Scotland
Judgment Date
20 July 2010
Procedural Posture
Note in Administration Proceedings / Opinion on Preliminary Legal Issue
Outcome
Note sustained; Icelandic decision recognised as binding in UK administration.
Legal Topics
Recognition of Foreign Insolvency Proceedings, Set Off in Insolvency, Jurisdiction Under EEA Insolvency Regulations, Res Judicata in Cross Border Insolvency
Insolvency Law European Union Law Banking Law Recognition of Foreign Insolvency Proceedings Set Off in Insolvency Jurisdiction Under EEA Insolvency Regulations Res Judicata in Cross Border Insolvency

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Parties

The Winding-Up Board of Landsbanki Islands HF

Noters

Margaret Mills, Patrick Brazzill, Thomas Burton and Alan Bloom, the Joint Administrators of Heritable Bank Plc

Respondents

Procedural Posture

Note in Administration Proceedings / Opinion on Preliminary Legal Issue

Legal Issues

  1. 1 Whether the rejection of Heritable's claims in the Icelandic winding up of Landsbanki is binding in the UK administration of Heritable under Regulation 5 of the Credit Institutions (Reorganisation and Winding Up) Regulations 2004
  2. 2 Whether the Icelandic decision founds a plea of res judicata in Scotland regarding the merits of Heritable's claims

Ratio Decidendi

The court held that the rejection of Heritable's claims in the Icelandic winding up of Landsbanki is binding in the UK administration of Heritable under Regulation 5 of the 2004 Regulations. The Icelandic winding up is an EEA insolvency measure, and decisions made therein regarding the existence and quantum of claims must be given effect in the UK as if they were part of UK insolvency law. Therefore, the Administrators of Heritable are bound to recognise the Icelandic decision, and Heritable's claims cannot be used to set off Landsbanki's claim in the UK administration. The Icelandic decision is also capable of founding a plea of res judicata in Scotland regarding the merits of...

Court Disposition

Note sustained; Icelandic decision recognised as binding in UK administration.

Orders

  • Administrators of Heritable are bound to give effect to the Icelandic decision rejecting Heritable's claims against Landsbanki.
  • Heritable's claims cannot be set off against Landsbanki's claim in the UK administration.