Michael Wilson & Partners Limited v John Forster Emmott
[2023] EWHC 1005 (Comm)
Michael Wilson & Partners Limited v John Forster Emmott & Ors
7 February 2024
[2024] EWHC 449 (Comm)
High Court
Two companies are in a huge fight over money. One wants to pay off its debts using money it already won in court. The other company says no. The judge decided there's too much confusion to easily decide, so they will have a proper court hearing to decide who's right.
Key Facts
- •Long-running dispute between Michael Wilson & Partners Limited (MWP) and John Forster Emmott.
- •Emmott sought to set off costs orders against an arbitral award he won against MWP.
- •MWP applied to strike out Emmott's set-off application and to debar him from further participation.
- •Numerous prior judgments and proceedings in various jurisdictions (England, Australia, New Zealand, BVI).
- •Dispute involves complex financial arrangements, including a litigation funding agreement with Mr. Sinclair and subsequent assignments of debts.
- •Several deeds of assignment and a vesting letter are central to MWP's argument that Emmott has no remaining entitlement to the judgment debt.
Legal Principles
Jurisdiction to strike out applications under CPR r. 3.4.
CPR r. 3.4
Court's inherent power to control its own procedure and/or general power under CPR 3.1(2)(m).
CPR 3.1(2)(m)
Set-off requires a sufficient connection between claims and a functional test of unjustness.
Case law (implied)
Interpretation of contractual documents (deeds of assignment and funding agreement).
Contract law principles
Outcomes
MWP's application to strike out Emmott's set-off application is dismissed.
The court lacks the power to strike out an application notice under CPR 23 using CPR 3.4. While the court considered inherent powers to control proceedings, it found insufficient grounds to stay or summarily dismiss the set-off application.
Emmott's set-off application will proceed to a hearing on its merits.
Significant factual and legal disputes remain, particularly concerning the interpretation of the deeds of assignment and the impact on Emmott's right to set-off. These disputes cannot be resolved summarily.
MWP's application to debar Emmott is stayed.
The application is premature pending resolution of the set-off issue and related statutory demand applications.
The set-off application hearing will be an attended hearing in London.
The Commercial Court's default position is for hearings of this length to be attended, even if parties are located overseas. The significance of the application warrants an in-person hearing.