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English Commercial Court refuses substitution: SPA anti-assignment and champerty invalidate assignment; CPR 19.2(4) limbs are disjunctive and assessed on the balance of probabilities (Tactus Holdings v Jordan)

Published on: 03 February 2025

Published by a LexisNexis Dispute Resolution expert
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Article summary

Tactus Holdings Ltd (in administration) v Jordan and others [2025] EWHC 133 (Comm)

What was the background?

  • Tactus Holdings Ltd (in liquidation) (Tactus) issued proceedings against seven individuals, the defendants, alleging a breach of warranty under a Share Purchase Agreement (SPA) that Tactus had entered into for the purchase of shares in a company in February 2022
  • In May 2024, Tactus purported to transfer its rights and claims under the SPA to Chillblast Ltd (Chillblast) via the ‘Tactus Assignment’
  • Earlier, in March 2024, Chillblast acquired from Santander UK plc debts owed by Tactus under the ‘Santander Assignment’, which provided for a share of proceeds arising from Tactus’s claims against the defendants
  • The defendants resisted Chillblast’s application to be substituted as the claimant, asserting that the Tactus Assignment was ineffective on the basis that it was both prohibited by the SPA and champertous in nature, with the result that the assignment upon which the proposed substitution depended was contrary to public policy

What did the court decide?

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