Jurisdiction(s):
United Kingdom

Proof of debt; IR 2016 rr 14.5 and 14.8; expectation loss for 'no alterations' breach and contractual costs recoverable: Brown v Ulrick [2024] EWHC 2041 (Ch)

Published on: 07 August 2024

Published by a LexisNexis Restructuring & Insolvency expert

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Article summary

Brown v Ulrick (as the liquidator of S.A.L. Holdings Ltd) S.A.L. Holdings Ltd (in members’ voluntary liquidation) [2024] EWHC 2041 (Ch)

What are the practical implications of this case?

This ruling highlights three key themes that merit special attention:

Assessing evidence on an application under IR 2016, SI 2016/1024, r 14.8 — the judgment serves as a timely reminder for insolvency practitioners of the authorities on weighing written evidence where no cross-examination is ordered (see paras [58]–[60]). The court’s reasoning shows how this principled approach shaped its evaluation of the material across the judgment (see paras [56]–[100]).
The correct measure of damages for a breach of a covenant not to alter — the court undertook a closely reasoned analysis explaining why, on these facts, expectation loss was preferred to reliance loss. This guidance will assist property and insolvency lawyers dealing with comparable covenant breach issues (see paras [30]–[55]).

In reaching its conclusions, the court gave proper consideration to the leading authority of Ruxley Electronics and Construction Ltd v Forsyth [1996] A.C 344, among others...

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