West 28th Street Limited & Anor v Halstead Associates Limited (trading as Halstead Associates)
[2024] EWHC 1698 (TCC)
The Commercial Law Practice Limited & Anor v Atkinson Wheller Limited
30 August 2024
[2024] EWHC 2195 (Ch)
High Court
A lawyer's client sued someone else, and then went bankrupt. The lawyer tried to take over the case. The judge said that wasn't allowed, but let the lawyer try again using a different legal route to get the case.
Key Facts
- •Professional negligence claim against a firm of patent attorneys (Atkinson Wheeler Limited).
- •Second claimant suffered losses due to allegedly negligent advice in 2018.
- •First claimant (solicitors) acted for the second claimant and purportedly received an assignment of his claim against the defendant.
- •Second claimant declared bankrupt; first assignment made immediately before bankruptcy.
- •Defendant challenged the validity of the assignment, arguing it was void for champerty.
- •Claimants sought to amend particulars of claim to rely on a second assignment from the bankrupt's trustees.
- •Defendant applied for reverse summary judgment and/or strike-out.
Legal Principles
Summary Judgment Principles (CPR r. 24.3)
Easyair Ltd v Opal Telecom Ltd [2009] EWHC 339 (Ch); AC Ward & Sons Ltd v Catlin (Five) Ltd [2009] EWCA Civ 1098
Strike Out Principles (CPR 3.4(2)(a))
CPR 3.4(2)(a)
Principles Governing Amendment of Particulars of Claim (CPR 17.1(2)(b))
White Book Note at 17.3.5 and 17.3.6; Pearce v East and North Hertfordshire NHS Trust [2020] EWHC 1504; Kawasaki Kisen Kaisha Ltd v James Kemball Ltd [2021] EWCA Civ 33; Kim v Park [2011] EWHC 1781
Law of Champerty
Farrar v Miller [2021] EWHC 1950, [2022] EWCA Civ 295; Trendtex Trading v. Credit Suisse [1982] 1 AC 679; Giles v Thompson [1994] 1 AC 142; Sibthorpe v Southwark LBC [2011] EWCA Civ 25; Davey v Money [2019] EWHC 997 (Ch); Courts and Legal Services Act 1990
Amendments Raising Post-Issue Facts
Hendry v Chartsearch (2000) 2 T.C.L.R. 115; Maridive & Oil Services (SAE) v CAN Insurance Company (Europe) Ltd [2002] EWCA Civ 369; Finlan & anr v Eyton Morris Winfield (a firm) [2007] EWHC 914; Munday v Hilburn and Fields [2014] EWHC 4496 (Ch); British Credit Trust Holdings v UK Insurance Limited [2003] EWHC 2404 [Comm]
Incurable Nullity
Ingall v Moran [1944] KB 160; Milburn-Snell v Evans [2011] EWCA Civ 577; Football Association Premier League Ltd v O’Donovan [2017] FSR 31
Outcomes
Summary judgment granted against the first claimant.
The First Assignment was deemed champertous and void, leaving the first claimant without title to sue. The second claimant's title passed to his trustee in bankruptcy.
Permission granted to the first claimant to amend its claim to rely on the Second Assignment.
The court exercised its discretion under the overriding objective to allow the amendment, balancing the need for efficiency against the claimant's delay in addressing the assignment issue. The case did not fall under the 'incurable nullity' exception to amending to add a post-issue cause of action.
Second claimant's claim for declaratory relief struck out.
This added nothing to the amended claim.
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