Daniel Lightman KC & Charlotte Beynon recommend a rigorous approach when bringing Insolvency Act claims
In brief
- Covers Chandler v Wright on insolvency claims where there are potential pleading deficiencies.
- Offers insight into the approach taken by the courts to the pleading of Insolvency Act 1986, ss 214 and 212 claims.
- Refers to the ongoing BHS litigation.
A High Court decision in the context of insolvency proceedings in August last year has provided guidance for practitioners as to how best to address potential pleading deficiencies and the ensuing skirmishes.
Mr Justice Edwin Johnson’s judgment in Chandler v Wright [2022] EWHC 2205 (Ch), [2022] All ER (D) 06 (Sept) has also reaffirmed the essential elements of claims under ss 212 and 214 of the Insolvency Act 1986 (IA 1986) and sent a strong message that judges will expect such claims to be pleaded with the same rigour that is expected in other areas of the Business and Property Courts.
The issue arose in the high-profile BHS litigation, which is currently making its way through the courts.
