Pioneer Seafood Ltd v Braer Corporation & Ors [1999] ScotCS 121 (21 May 1999)

Pioneer Seafood Ltd v Braer Corporation & Ors [1999] ScotCS 121 (21 May 1999)

Given the pursuer's insolvency, the lack of willingness by receivers or floating charge creditors to fund the action or accept liability for expenses, and the credible testimony of inability to pay, the defenders are entitled to protection under section 726(2) of the Companies Act 1985. The court orders caution in the sum of £10,000 and sists the action until caution is found.

Citation
[1999] ScotCS 121
Parties
Pursuer: Pioneer Seafood Limited; First Defender: The Braer Corporation; Second Defender: Trevor Williams; Third Defender: Anthony Jones; Fourth Defender: Michael S Hudner; Fifth Defender: Assuranceforeningen Skuld; Minuter: The International Oil Pollution Compensation Fund
Jurisdiction
Scotland
Judgment Date
21 May 1999
Procedural Posture
Civil / Interlocutory Motion for Caution for Expenses
Outcome
Motion granted in part; pursuer ordered to find caution for expenses and action sisted until caution is found.
Legal Topics
Security for Costs, Economic Loss, Receivership, Court Discretion in Procedural Orders
Civil Procedure Insolvency Company Law Security for Costs Economic Loss Receivership Court Discretion in Procedural Orders

Case Brief

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Parties

Pioneer Seafood Limited

Pursuer

The Braer Corporation

First Defender

Trevor Williams

Second Defender

Anthony Jones

Third Defender

Michael S Hudner

Fourth Defender

Assuranceforeningen Skuld

Fifth Defender

The International Oil Pollution Compensation Fund

Minuter

Procedural Posture

Civil / Interlocutory Motion for Caution for Expenses

Legal Issues

  1. 1 Whether the pursuer should be ordered to find caution (security) for expenses under section 726(2) of the Companies Act 1985
  2. 2 Whether the insolvency of the pursuer justifies an order for caution
  3. 3 Whether the Braer mishap was the cause of the pursuer's insolvency and its relevance to the order for caution

Ratio Decidendi

Given the pursuer's insolvency, the lack of willingness by receivers or floating charge creditors to fund the action or accept liability for expenses, and the credible testimony of inability to pay, the defenders are entitled to protection under section 726(2) of the Companies Act 1985. The court orders caution in the sum of £10,000 and sists the action until caution is found.

Court Disposition

Motion granted in part; pursuer ordered to find caution for expenses and action sisted until caution is found.

Orders

  • Pursuer to find caution for expenses in the sum of £10,000.
  • Action sisted until caution is found.