Wayne Murfet & Anor v Property Lending LLP & Anor
[2024] EWHC 2787 (Ch)
Ciaran Charles Little & Anor v Olympian Homes Limited
8 July 2024
[2024] EWHC 1766 (Ch)
High Court
Two men received demands to pay a large debt, arguing they'd been told they didn't have to. A judge ruled there's a good chance they were right, and cancelled the demands.
Key Facts
- •Ciaran Little and James O'Shea (Applicants) received statutory demands from Olympian Homes Ltd (OHL) for £102,165.81 based on personal guarantees for a loan to Little's company.
- •The debt primarily comprised accrued interest on a loan that was partially repaid.
- •Applicants disputed the debt, arguing (1) interest was waived contractually and (2) OHL is estopped from recovering interest.
- •Applicants' applications to set aside the statutory demands were 6 days late.
- •A dispute arose regarding the timing of the application and an alleged undertaking from OHL's solicitors.
- •The Balia Loan, an interest-free loan from Little to OHL's director, was central to the Applicants' arguments.
- •OHL's Head of Legal, Tom Piper, issued a draft deed of release, mistakenly believing the debt had been fully settled.
- •The Applicants argued that the communications, including the draft release, constituted a waiver or estoppel.
Legal Principles
An application to set aside a statutory demand must be made within 18 days of service.
Insolvency (England and Wales) Rules 2016, Rule 10.4(1)-(2)
To set aside a statutory demand, a debt must be disputed on substantial grounds (a genuine triable issue, with no material difference from 'real prospect of success').
Insolvency (England and Wales) Rules 2016, Rule 10.5(5)(b); Feldman v Nissim [2010] EWHC 1353 (Ch); Collier v P & M J Wright Ltd [2008] 1 WLR 643
A contractual waiver can be oral, written, or inferred from conduct; however, a written waiver is required under the contract's terms.
Chitty on Contracts, §26-043, §26-044
Promissory estoppel requires a clear and unequivocal statement or conduct indicating an intention not to enforce strict legal rights, reliance by the representee, and inequitability of resiling.
Chitty on Contracts, §7-031; Rock Advertising Ltd v MWB Business Exchange Centres Ltd [2018] UKSC 24
Outcomes
Granted extension of time for the applications to set aside statutory demands.
Minimal delay, acceptable reasons, and no prejudice to OHL.
Set aside the statutory demands.
The debt is disputed on substantial grounds due to a genuine triable issue on the estoppel argument. The court found the applicants had a real prospect of success on their estoppel argument.