John Blavo v Law Society [2017] EWHC 561 (Ch)
ICLR
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The WLR Daily case summaries
[2017] WLR (D) 254
In re Blavo
Blavo v Law Society of England and Wales
2016 Dec 16, 2017 Feb 20, 21; March 29
Judge Klein sitting as a High Court judgeBankruptcy— Debt— Statutory demand— Solicitors Regulation Authority intervening in solicitor’s practice and in his company— Statutory demands served for costs of interventions— Solicitor applying for statutory demands to be set aside— Whether debt claimed amounting to liquidated sum— Insolvency Act 1986 (c 45), s 267(2)(b) — Solicitors Act 1974, Sch 1, Pt II, para 13
The applicant was a solicitor, a director of and the sole shareholder in the company, a vehicle through which legal services were provided. The company was regulated by the Solicitors Regulation Authority (“SRA”). The SRA intervened in the company and also in the applicant’s practice. The company subsequently went into liquidation. The Law Society served two statutory demands upon the applicant in respect of the costs of the interventions into the company and his practice. The applicant applied to have the statutory demands set aside under rule 6.5(4)(d) of the Insolvency Rules 1986 on grounds, including that the sums claimed by the demands were not liquidated sums within the meaning of section 267(2)(b) of the Insolvency Act 1986 so that a bankruptcy petition could not be presented. The Law Society contended that paragraph 13 of Pt II of Schedule I to the Solicitors Act 1974 provided that intervention costs were recoverable from the solicitor as a statutory debt and that the labelling of the solicitor’s liability as such was enough to satisfy the requirements of section 267(2)(b) of the 1986 Act.
On the application—
Held, application granted. Where the intervening agent was a solicitor, it was difficult to see how, generally and in principle, the costs liable to be paid under paragraph 13 of Pt II of Schedule 1 to the 1974 Act could be a pre-ascertained liability. Generally, the liability of a solicitor for the statutory debt under paragraph 13 of the 1974 Act was not a liability for a liquidated sum. The statutory demands were to be set aside because the debts in question were not for liquidated sums (paras 42, 47, 54, 59, 60).
Pine v Law Society [2002] EWCA Civ 175B; [2002] 1 WLR 2189B, CA applied.
Pyke v Law Society [2006] EWHC 3489 (Ch)Not on Bailii! disapproved.
Adrian Francis (instructed by Radcliffes Le Brasseur) for the applicant.
Chloe Carpenter (instructed by Monro Wright & Wasbrough LLP) for the Law Society of England and Wales.
Reported by: Sarah Addenbrooke, Barrister
Full judgment: BAILII
Subject(s):
- SRA decisions🔍
Date: 29/3/17🔍
Court: High Court (Chancery Division)🔍
Judicial history:
- Lord Chancellor v Blavo and Co Solictors Ltd [2018] EWHC 3556 (QB) (recovery of public funds)
- Lord Chancellor v John Blavo [2016] EWHC 126 (QB), [2016] MHLO 6 (freezing order)
- John Blavo v Law Society [2018] EWCA Civ 2250 (statutory demand)
- Blavo and Co Solicitors (SRA decision: closure) [2015] MHLO 70 (closure)
Judge(s):
- Klein🔍
Parties:
Citation number(s):
What links here:- Blavo and Co Solicitors (SRA decision: closure) [2015] MHLO 70
- Lord Chancellor v John Blavo [2016] EWHC 126 (QB), [2016] MHLO 6
- John Blavo v Law Society [2018] EWCA Civ 2250
- Lord Chancellor v Blavo and Co Solictors Ltd [2018] EWHC 3556 (QB)
Published: 11/7/18 12:23
Cached: 2024-11-11 20:19:42