Trade Publication Article

Re Edengate Homes (Butley Hall) Ltd (in liquidation); Lock v Stanley

Curl, Joseph, Collings, Matthew

2022

Overview

COMPANY | INSOLVENCY Court of Appeal (Civil Division) 9 May 2022 Asplin, Males and Stuart-Smith LJJ [2022] EWCA Civ 626 [2022] PLSCS 74 Company - Insolvency - Assignment of claim - Set aside - Respondent liquidator bringing claims against appellant alleging transactions at undervalue, preference and misfeasance - Respondent assigning claim to litigation funding company - High Court refusing appellant's application to set aside assignment - Appellant appealing - Whether appellant having standing to make application - Whether respondent's decision to assign being perverse - Appeal dismissed In March 2012, the appellant and her husband formed the company as a special purpose vehicle to acquire and develop Butley Hall, Prestbury, Cheshire. [...]an applicant might qualify as \"a person aggrieved\" by virtue of being a creditor, but would not have a \"legitimate interest\" if its interest in obtaining the relief was contrary to the interests of creditors generally: The judge here purported to apply the Edennote test, which required the judge at first instance to evaluate all the circumstances of the case and be satisfied that the action taken by the liquidator was so utterly unreasonable and absurd that no reasonable man would do it.

• Publisher: Mark Allen Group Ltd
• Subject: Appeals / Insolvency / State court decisions