Finance

When a duty of care does arise in tort – suing Companies House

8 February 2015 by David Hart KC

Sebry v Companies House and The Registrar of Companies [2015] EWHC 115 (QB) – read judgment

Paul Rees QC and Neil Sheldon of 1 Crown Office Row represented Companies House in this case. Neither has had anything to do with the writing of this post.

Cases about whether someone owes a duty of care in tort can be surprisingly difficult to decide. Kate Beattie has just posted on the Michael case here, where no duty was held to arise, despite (it appears) the police control room being told by the doomed Ms Michael that her ex-boyfriend had just told her that he was just about to “fucking kill you”. He was as good as his word, within 20 minutes, and the family now sues the police. How much more direct can  you be than that? And yet the family lost 5-2 in the Supreme Court.

The facts of the present case are much less graphic. A muddle in Companies House meant that Mr Sebry’s long-established company (Taylor and Sons Limited) was marked on the official Registry as being in liquidation, whereas the true insolvent company was Taylor and Son Limited – just one Son. Companies House corrected the error quickly, but key creditors and suppliers had heard about the false information, and withdrew credit – such that within 2 months Mr Sebry’s company had gone into administration.

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A spectacularly Misleading Case – nested in a real one

25 November 2014 by David Hart KC

Islamic Investment Co v. Symphony Gems & Mehta, 19 November 2014, Hamblen J – judgment here

Hamblen J observed that “the facts…are so extraordinary that they could have come from one of A.P. Herbert’s “Misleading Cases”. Yes indeed. A solicitor decided to make up three years of litigation, writing some fake judgments, pretending to instruct barristers, and churning out fictitious correspondence.

Why? It is not clear from the judgment, though one or two clues  are given. 

The fraud surfaced in a long-running dispute between a claimant finance company seeking repayment of a loan, and the first defendant, diamond traders, and the second and third defendant guarantors. The defendants now owe the claimant $14m. The defendants do not want to pay $14m, and have taken every point in resisting the claimant’s attempts to secure its money – so much so that in October 2010 David Steel J decided that the second defendant, Mr Rajesh Mehta go to prison for his refusal to explain where his assets were, by activating a previously suspended committal order.

The current application was Mr Mehta’s application to set aside all adverse court orders. His reasons – my solicitor had acted against me, and was deliberately trying to prejudice me in my affairs in making up all this litigation.

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Supreme Court – Measures against Iranian bank unlawful, and the secret hearing ruling

19 June 2013 by David Hart KC

Bank Mellat v HM Treasury [2013] UKSC 38 (CMP: see judgment) and 39 (main: see judgment)

Two sets of judgments today from a 9-judge Supreme Court in the Bank Mellat case. The first explains why the Court adopted a secret procedure in the absence of the Bank (i.e. a Closed Material Procedure) but added that the whole palaver in fact added nothing to their knowledge. The second concludes that financial restrictions imposed in 2009 on an Iranian Bank which effectively excluded it from the UK financial market were arbitrary and irrational and were also procedurally unfair. 

Expenses peer Taylor convicted, but will he be jailed?

26 January 2011 by Adam Wagner

Ex-Tory peer Lord Taylor of Warwick has become the first parliamentarian to be found guilty by a jury of making false parliamentary expenses claims. He now faces sentencing. Given the recent case of former MP David Chaytor, it seems unlikely that he will escape jail.

A jury at Southwark Crown Court found Taylor guilty of six counts of false accounting under section 17 of the Theft Act 1968, by a majority of 11 to 1. The expense at issue totalled £11,277. Mr Justice Saunders, who also sentenced Chaytor, presided over the trial.

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Increasing prison numbers could save money, says report

31 August 2010 by Adam Wagner

A new report from the think-tank Civitas argues that increasing community sentences and cutting prison numbers will lead to more crime and add to costs too.

This is contrary to the the view of the Justice Secretary Ken Clarke, who has argued recently that there is no link between the rising level of imprisonment and falling crime.

The report, Prison, Community Sentencing and Crime, is by Ken Pease, a professor at the Manchester Business School and a former Home Office criminologist. It does not present any significant new research; rather, it seeks to put the other side of the debate on prison numbers, in light of the “apparently concerted attempt to justify an increasing use of community sanctions in place of custody for convicted criminals”.

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Boost for economic and social rights after landmark Court of Appeal ruling [updated]

13 July 2010 by Rosalind English

R (on the application of S) (Claimant) v Secretary of State for the Home Department (Defendant) & (1) Amnesty International & AIRE Centre (2) United Nations High Commissioner for Refugees (Interveners) (2010) – Read judgment

The Court of Appeal has ruled that the EU Charter of Fundamental Rights (“the Charter”)  could be directly relied on in the UK in a decision on the removal of an Afghan asylum seeker to Greece.

This Charter combines the rights guaranteed by the European Convention on Human Rights and Freedoms 1950 (“ECHR”) with the fundamental social rights set forth in the European Social Charter and in the Community Charter of Fundamental Social Rights of Employees. The decision could see the introduction of “social and economic” rights into the UK for the first time, but it could also place an unmanageable burden on member states to comply with the wide-ranging charter.

A reference to the European Court of Justice will now be made in respect of the application of the Charter in the context of return of asylum seekers to Greece under the Dublin Regulation. The Regulation is the cornerstone of EU refugee law, establishing a system of determining responsibility for examining asylum claims and ensuring that each claim is examined by one Member State rather than allowing multiple applications for asylum submitted by the same person in several Member States with the sole aim of extending their stay in the EU.

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Iranian Bank anti-terrorism restrictions order upheld

15 June 2010 by Rosalind English

Bank Mellat v HM Treasury [2010] EWHC 1332(QB) Miity J 25/5/2010 – read judgment

A challenge to the imposition of a Financial Restrictions Order on an Iranian Bank alleged to have supported Iran’s nuclear program has been dismissed as the order was not considered disproportionate in the light of the importance of the public interested protected.

The order, which directed that anyone in the UK financial sector must not enter into or continue to participate in business with Bank Mellat, was maintained despite the Court of Appeal’s refusal to allow the government to rely upon secret evidence in order to prove the bank’s links with the nuclear program (see Court of Appeal launches offensive against secret justice with three linked judgments).

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Bill of Rights privilege plea fails parliamentary expenses four

14 June 2010 by Adam Wagner

Morley & Ors, R. v [2010] EW Misc 9 (EWCC) (11 June 2010) – Read judgment

Four former Members of Parliament have failed in their initial bid to claim parliamentary privilege in criminal proceedings arising from the parliamentary expenses scandal. The case has highlighted constitutional principles which reach back hundreds of years to the time of Oliver Cromwell, and raises questions of whether parliamentarians are above the criminal justice system.

This will not be the end of the affair, however, as leave to appeal has been granted with the case to be heard by the Court of Appeal as early as before the end of this month

Mr Justice Saunders sitting the Southwark Crown Court ruled that the parliamentary privilege enshrined in the 1688 Bill of Rights does not extend to protecting the four ex-MPs, Elliott Morley, David Chaytor, James Devine and Lord Hanningfield, from prosecutions for claiming inflated expenses.

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