LEXLAW Solicitors & Barristers
We successfully annulled a bankruptcy order against our client after HMRC failed to properly serve notice of a key hearing. Mr. Gaster proved this procedural error denied him the chance to present evidence of his ability to pay. The court’s judgment emphasized due process under Rule 10.23 of the Insolvency Rules 2016, exposing flaws in HMRC’s conduct and evidence on the adjournment notice.
Funding Circle personal guarantees are under legal scrutiny, with a High Court case questioning their enforceability. Many business owners face enforcement actions following loan transfers to Azzurro Associates. This article explores the implications, risks, and potential legal defences available to guarantors.
In Purkiss v Kennedy, the High Court rejected a liquidator’s attempt to recover unpaid PAYE and NICs from Ethos Solutions Ltd’s failed tax avoidance scheme. The court found no fraudulent intent to evade HMRC under Insolvency Act 1986, Section 423. This case highlights HMRC’s challenges in tax recovery via insolvency law and the need to prove intent.
Compulsory mediation is now mandatory for small claims under £10,000. Our litigation specialists are masters of ADR and regularly help clients navigate mediation in England & Wales.
In Manolete Partners PLC v White, the Court of Appeal ruled that a pro bono costs order under Section 194 LSA 2007 for £85,000 payable to the Access to Justice Foundation (AJF) was unconditional and could not be set off against the pro bono party’s outstanding judgment debt, reinforcing the distinct legislative purposes of the provision.
This article uses the case of Sandra Blower v GH Canfields LLP to illustrate how judges in England and Wales reach decisions in civil litigation. Mrs. Blower alleged that Canfields, a London law firm, gave her inadequate advice regarding a settlement during her husband’s bankruptcy proceedings, where he faced liabilities exceeding £2 million. During a mediation session, Mr. Blower and the firm’s solicitor negotiated a £1.5 million settlement. However, Mr. Blower later attempted to back out of this agreement. The judge ruled in favour of the law firm. The judgment demonstrates the importance of evidence and legal precedent in the English legal system, as well as the weight judges give to the conduct and arguments of the parties.
HMRC’s use of Account Freezing Orders has risen 170% over the past 3 years. An AFO allows HMRC to quickly freeze funds in accounts suspected of criminal activity for up to two years. The number of AFOs, easily obtained by HMRC, has surged from 125 in 2022 to 341 in 2024, with the value of frozen assets rising massively. AFOs pose catastrophic risks for innocent businesses caught up in HMRC’s net.
The High Court ordered Norman Freed to repay £918,590 after causing Just Recruit Group Ltd to make substantial payments to connected companies while insolvent, breaching his fiduciary duties under the Companies Act 2006.
Businesses in London, UK are being targeted by a debt collection invoice scam email claiming to be from Lexlaw Solicitors (lexlaw.co.uk). These emails are FAKE. Spot the red flags and avoid falling victim to this invoice scam.
In addressing the challenge of stalled litigation, the Civil Procedure Rules provide an extensive legal framework designed to facilitate swift and just resolution of cases. Central to this framework is the overriding objective of the CPR, which mandates that cases should be handled justly and at proportionate cost.