Source: All England Reporter
Publisher Citation: [2002] All ER (D) 507 (Jul)
Neutral Citation: [2002] EWCA Civ 1140
Court: Court of Appeal, Civil Division

Mummery, Clarke and Hale LJJ

Representation Anthony Elleray QC and Patrick Green (instructed by Shoosmiths) for the claimant.
  Simon Monty (instructed by James Chapman & Co, Manchester) for the first defendant.
  Francis Bacon (instructed by Beachcroft Wansbroughs, Leeds) for the second defendant.
Judgment Dates: 31 July 2002


Negligence - Duty to take care - Existence of duty - Insolvency practitioner - Defendant insolvency practitioner advising claimant - Claimant electing to enter into individual voluntary arrangement - Creditors' meeting being called - Defendant acting as chairman of meeting - Defendant advising claimant in adjournment of meeting - Whether defendant's role as chairman extinguishing duty of care to claimant during meeting.

The Case

It was to be emphasized that it was important for a nominee or chairman of a creditors' meeting, called to approve an Individual Voluntary Arrangement under PtVIII of the to make clear to a debtor in what capacity they were acting at any time. In the instant case, in the absence of a clear indication to the claimant that he was no longer acting in that capacity, it was fair just and reasonable to impose a duty upon the second defendants' representative, who was acting as chairman of a creditors' meeting and giving the claimant advice during that meeting.

Practice Areas

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