Anthony John Wright & Ors v Dominic Joseph Andrew Chappell & Ors
[2023] EWHC 2873 (Ch)
Mark Wilson & Anor (as joint liquidators of Westcountrytruffles Limited) v Brian Bryan Frost & Anor
18 March 2024
[2024] EWHC 573 (Ch)
High Court
A former company director facing legal action asked for the court case to be postponed because of mental health problems. A doctor's report supported his request. The judge agreed to postpone the case so the director could get better, but refused to stop the case altogether. The judge's decision shows courts try to be fair and let everyone have a chance to be heard, even if they're unwell.
Key Facts
- •Joint liquidators of Westcountrytruffles Limited (in liquidation) brought a claim against the directors for overdrawn directors' loan accounts, unlawful dividends, breaches of directors' duties, and equitable compensation.
- •The company was involved in a scheme selling truffle-inoculated tree saplings as an investment opportunity, with funds rapidly dissipated.
- •The First Respondent, Brian Frost, a former director, defended the claim on grounds including statute-barred debt, the company's non-involvement in marketing, and a challenge to the accuracy of the accounts.
- •The First Respondent sought a stay or adjournment of the trial due to mental health issues, supported by a psychiatrist's report.
- •Multiple extensions of time were granted throughout the proceedings, initially due to solicitor capacity issues and later due to the First Respondent's mental health.
Legal Principles
An adjournment of a trial is a case-management decision within the court's discretion, focusing on whether a fair trial is possible in all circumstances.
CPR 1.1; Bilta (UK) Ltd v Tradition Financial Services Ltd [2021] EWCA Civ 221 at [30]
Applications for adjournment on medical grounds should include a medical report identifying the condition, its impact on trial participation, prognosis, and whether reasonable adjustments could suffice.
Levy v Ellis-Carr [2012] EWHC 63 (Ch)
Courts should be hesitant to refuse adjournment applications on medical grounds, especially for litigants in person, but the merits of the case are relevant.
Fox v Graham, The Times, 3 August 2001
Section 1157 of the Companies Act 2006 allows for relief from liability for directors, but this is dependent on facts and requires court determination.
Companies Act 2006, s. 1157
Outcomes
The trial was adjourned.
The court considered the medical report, the First Respondent's inability to participate due to mental health issues, and the need for a fair trial. The court rejected a stay of proceedings.