LEXLAW Solicitors & Barristers
The High Court held that Paul and Joanne Rutter unlawfully reduced their directors’ loan account by £560,000 through a back-dated dividend and misapplied over £256,000 of company funds on their personal properties while Rut5 Ltd was approaching insolvency, breaching duties under the Companies Act 2006 and the Insolvency Act 1986.
Master Cook’s ruling in Chinda v Cardiff & Vale University Health Board EWHC 2696 (KB) refuses permission to withdraw an accepted Part 36 offer, stressing that a mere change of mind fails CPR 36.10’s “change of circumstances” test – even for vulnerable claimants. The court prioritised CPR Part 36 certainty.
Contrary to common belief, unpaid High Court & County Court judgments (CCJs) do not always become unenforceable after six years. With proper legal procedures and court permission, creditors can successfully enforce judgment debts many years old.
The High Court held that Ronojoy Nag was liable for misfeasance and breach of fiduciary duty after diverting company assets during insolvency, while his wife Amanda Nag was found liable for dishonest assistance and knowing receipt, ordering both to account for misapplied funds.
An application for relief from sanctions under CPR 3.9 is available where a party has failed to comply with court deadlines or procedural rules. The court will apply the three-stage test from Denton v TH White Ltd, considering (1) the seriousness of the breach, (2) the reasons for the default, and (3) all the circumstances of the case. Relief must be sought promptly, as delay may undermine the application.
The High Court, per Chief ICC Judge Briggs, held that Manolete Partners could not advance misfeasance claims under section 212 Insolvency Act 1986 via an Insolvency Application, and instead had to pursue them under CPR Part 7, ordering payment of the full Part 7 issue fee despite procedural arguments about hybrid claims brought in insolvency proceedings.
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McGuinness v Goldentree [2025] EWHC 870 (Ch) clarifies investment property loan exemptions under Article 61A FSMA 2000. The High Court struck out regulatory challenges to commercial development finance, confirming contemporaneous evidence establishes business purposes. The judgment reinforces that former directors lack litigation authority during administration without administrator consent. This decision protects legitimate commercial lending from spurious consumer credit challenges whilst emphasising robust documentation practices for development finance practitioners.
The High Court refused a summary judgment application by Sampson Coward LLP, a Salisbury-based law firm, over its handling of £2 million in escrow funds, allegedly misapplied while acting for connected parties, following assignment of the claims to litigation funder Manolete Partners.
The High Court ordered Dr Amir Matta, director of Saint George Investment Holdings Ltd, to repay £1.43 million after he misapplied company funds for personal expenses, breaching his statutory duties under the Companies Act 2006 and authorising unsubstantiated payments to connected parties during a period of financial distress.
Real Estate Tycoon, Tchenguiz challenged the £6.5 million claim by IG Index Limited over spread-betting debt but court upheld the claimant’s position. The ruling implicates critical precedent for financial instruments, spread betting, statutory interpretation of financial regulations.