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Bankruptcy

27 July 2017
Issue: 7756 / Categories: Case law , Law digest , In Court
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Re Lemos; Leeds and another (in their capacity as the joint trustees in bankruptcy of the estate of Lemos) v Lemos and others [2017] EWHC 1825 (Ch), [2017] All ER (D) 157 (Jul)

The Crescent principle (that legal professional privilege of a predecessor in title enured to the benefit of his successor) had no application in the case of the passing of property to a trustee in bankruptcy. If the judge in Shlosberg v Avonwick Holdings Ltd [2016] All ER (D) 76 (May) had taken the view that privilege passed to a trustee in bankruptcy in respect of asset documents, then that decision had effectively been overruled by the later decision of the Court of Appeal in that case, and, insofar R e Konigsberg [1989] 3 All ER 289 had held that view concerning the application Crescent principle, it had been wrongly decided.

Further, privilege was a fundamental human right and the court had no jurisdiction to direct a bankrupt to waive privilege in any documents. So held the Chancery Division in dismissing, for the most part, an application by the former trustees in the bankruptcy of

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