Dean McGuinness & Anor v Edward Avery Gee & Ors
[2023] EWHC 3283 (Ch)
Paul Allen & Anor v Sines Parks Holdings Limited
19 February 2024
[2024] EWHC 327 (Ch)
High Court
A company in administration tried to stop another company from developing and selling plots of land. The court decided the sale of the land previously overrode the other company's rights, and granted an order to temporarily stop development until the main case is fully heard. Both sides should also consider settling outside of court.
Key Facts
- •Six companies (Redhill Residential Park Ltd, Plum Tree Country Park Ltd, Deers Leap Ltd, Budemeadows Country Park Ltd, Christchurch Marina Park Ltd, Royale Parks (Christchurch) Ltd) were in administration.
- •Joint administrators (Paul Allen and Geoffrey Rowley) applied for an interim injunction against Sines Parks Holdings Ltd.
- •The application involved a Section 238 Insolvency Act 1986 claim and an alternative argument based on the sale of sites by a chargee, the administrators' position as lessees, and the existence of statutory moratoriums.
- •A claim form with Particulars of Claim was issued by the companies, seeking to restrain trespass.
- •The Respondent, Sines Parks Holdings Ltd, had agreements (Transfer Agreement and Settlement Agreement) with the Companies concerning Plots on the Sites.
- •A key issue was whether the sale of the Sites overreached the Respondent's interests and rights under these agreements.
- •The Respondent also argued that agreements under the Mobile Homes Act 1983 were binding on successors in title.
- •The leases granted to the Companies were due to expire on 21 March 2024.
Legal Principles
Test for interim injunctive relief (American Cyanamid principles and Cayne approach)
American Cyanamid and Cayne and Another v Global Natural Resources plc [1984] 1 All ER 225
Overreaching
Law of Property Act 1925, sections 2(1) and 104
Mobile Homes Act 1983
Mobile Homes Act 1983, sections 1(2), 3, 5(1)
Land Registration Act 2002
Land Registration Act 2002, section 27
Insolvency Act 1986, Schedule B1, paragraph 43
Insolvency Act 1986, Schedule B1, paragraph 43
Cross-undertaking in damages
White Book, Section 15; Staines v Walsh and Howard [2003] EWHC 1486 (Ch); Premier Motorauctions Ltd v PricewaterhouseCoopers [2017] EWCA Civ 1872
Outcomes
Interim injunction granted, restraining access to and egress from the Sites and the sale of any interest in the Plots and relevant mobile homes.
The Companies established a serious issue to be tried and sufficiently strong merits to justify an interim injunction. The Court found that the sale of the Sites overreached the Respondent's interests, and that the Respondent's arguments based on the Mobile Homes Act 1983 and contractual rights were not successful. Damages were not considered an adequate remedy for the Companies.
Application to amend the Application Notice adjourned.
Insufficient time had been provided by the Applicants, making it unfair to the Respondent to consider the amendment fully at this stage.
Similar Cases
The Mayor & Burgesses of the Royal Borough of Kingston upon Thames v Michael Casey & Ors
[2024] EWHC 2252 (KB)
Chantal Weldon v Godiva Mortgages Limited & Anor
[2024] EWHC 316 (KB)
Lee James Bootle v GHL Property Management and Development Limited & Anor
[2024] EWHC 2928 (Ch)
The Mayor & Burgesses of the London Borough of Enfield v Charles Snell & Ors
[2024] EWHC 1206 (KB)