Smith & Anor v QBE Insurance (Europe) Ltd & Ors  EWHC 3172 (Ch) (08 December 2010)
Mr Justice Norris has handed down his judgment in Smith & Anor v QBE Insurance (Europe) Ltd & Ors  EWHC 3172 (Ch) (08 December 2010). The case concerns the use of liquidation and the procedure's interaction with judgment debts. As the learned judge notes:
"It is not difficult to see what is going on. Alerted to the possibility that it had a claim against SGC, Templeton was anxious to turn that claim into a judgment debt before SGC was wound up, so that when it came to proof in the liquidation Templeton could rely on the 2007 Judgment and would not have to persuade the liquidator to admit the claim to proof. It looks as though Mr Williams was particularly co-operative and Templeton's objective was achieved. In the ordinary course Templeton would be treated (for voting and other purposes) as an unsecured judgment creditor in the liquidation: and nothing in the papers suggests that this case is out of the ordinary."
"This is the ultimate statement of where the law on IVAs is to be found in our great common law...