News: May 2018

Is software a “good”?

In a recent decision, the Court of Appeal has determined that the Commercial Agents (Council Directive) Regulations 1993 (Regulations) do not apply when the agent in question is engaged in respect of the sale of intangible property – electronic goods cannot be regarded as such. Thus agents engaged in the sale of electronic items (such […]

Solvency statement: breach of directors’ duties results in personal liability

Three company directors were found to have acted in breach of duty, and thus have assumed personal liability in connection with a reorganisation which left the company unable to meet its own liabilities without the assistance of its subsidiaries in LHR Services Ltd (in Liquidation) v Raymond Arthur Trew, Jason Marcus Brewer, Derek O’Neill. As […]

Negotiating damages – a possible limitation on damages for breach of covenant

Loss in claims involving breaches of restrictive covenants or misuse of confidential information can often be difficult to prove and are easily challenged. In a claim for breach of covenant, it may be said that clients would have left along with the defendant employee in any event; or in the case of misuse of information, […]

Insolvency – Challenging pre-pack sales

A ‘pre-pack’ is where a company in financial difficulty arranges the sale of its business before entering administration (a form of insolvency process). Immediately upon the company entering administration, and without first notifying creditors, the administrators sell the company’s assets to a third party. Creditors of the company that has entered administration are only likely […]

Singularis Holdings Ltd (in liquidation): a cautionary tale for banking institutions?

Banks are generally not liable to compensate customers for fraudulent payments if the customer authorised the payment. However, in Barclays Bank Plc v Quincecare Ltd [1992] 2 All E.R. 363 it was held that banks owe a duty to prevent fraudulent transactions if the bank has reasonable grounds for believing that the customer authorisation is […]

So far so good…

London as a centre for international arbitration emerges unscathed (so far) from the uncertainty of Brexit. The London Court of International Arbitration (LCIA) recently published their 2017 Casework Report (Report) which provides welcome reassurance to London arbitration practitioners as to the high standing of London as a world centre for international arbitration. Highlights from the […]

Breach of freezing order is grounds for conspiracy claim

Upholding a decision of the Court of Appeal, the Supreme Court has determined that, in cases involving conspiracy to injure, acting in contempt of court amounts to “wrongful means”, whilst the place of the “event giving rise” to the damage suffered, for the purposes of determining jurisdiction, is the place where the conspiratorial agreement was […]

Terminating contracts: proceed with care

Following the recent upturn in the number of companies entering insolvency processes, it is important to consider what steps you should take if you have a contract with a company in financial trouble. Your first instinct might be to end the contract immediately; however, the recent decision in Phones 4U Ltd (in administration) v EE […]

Notification clauses and the importance of being specific

The Court of Appeal has sent out a warning to parties intending to pursue a breach of warranty claim in a recent decision highlighting the importance of contractual notification provisions. The court’s strict approach in Teoco UK Limited v (1) Aircom Jersey 4 Limited (2) Aircom Global Operations Limited is a reminder that where a […]

Who should pay for replacing flammable cladding?

First legal case raises more questions than answers The first case on liability for the costs of replacing flammable cladding provides little comfort to lessees. The call by a first tier tribunal for the introduction of a warranty scheme to meet the repair costs was made after acknowledging that litigation on this issue is unlikely […]