BLACKBURN, EILEEN AND ECHELON WEALTH MANAGEMENT Ltd v BARNETT ALEXANDER AND QUARTERS TRUSTEES Ltd [2015] ScotCS CSOH_179 (23 December 2015)

BLACKBURN, EILEEN AND ECHELON WEALTH MANAGEMENT Ltd v BARNETT ALEXANDER AND QUARTERS TRUSTEES Ltd [2015] ScotCS CSOH_179 (23 December 2015)

The transfer from the defender's trading account did not have material or patrimonial value equal to £200,000 at the time of transfer; thus, the defender failed to establish repayment of the alienation, and the payment to the SIPP remains a gratuitous alienation under section 242.

Citation
[2015] ScotCS CSOH_179
Parties
Pursuer: Eileen Blackburn; Pursuer: Echelon Wealth Management Limited (in liquidation); Defender: Barnett Alexander; Defender: Quarters Trustees Limited
Jurisdiction
Scotland
Judgment Date
23 December 2015
Procedural Posture
Civil / Preliminary Proof
Outcome
Case put out by order for further procedure; no decree granted at this stage.
Legal Topics
Gratuitous Alienation, Repayment, Adequate Consideration, Liquidation, Trusts
Insolvency Company Law Gratuitous Alienation Repayment Adequate Consideration Liquidation Trusts

Case Brief

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Parties

Eileen Blackburn

Pursuer

Echelon Wealth Management Limited (in liquidation)

Pursuer

Barnett Alexander

Defender

Quarters Trustees Limited

Defender

Procedural Posture

Civil / Preliminary Proof

Legal Issues

  1. 1 Whether the payment of £200,000 to the SIPP was a gratuitous alienation under section 242 of the Insolvency Act 1986
  2. 2 Whether the transfer of £200,000 from the defender's trading account constituted repayment of the alienation
  3. 3 Whether the transfer had material or patrimonial value sufficient to constitute repayment

Ratio Decidendi

The transfer from the defender's trading account did not have material or patrimonial value equal to £200,000 at the time of transfer; thus, the defender failed to establish repayment of the alienation, and the payment to the SIPP remains a gratuitous alienation under section 242.

Court Disposition

Case put out by order for further procedure; no decree granted at this stage.