Legal News

Andrew Mitchell KC, acting as a deputy High Court judge, has turned down National House Building Council’s bid for summary judgment aimed at knocking out Peabody Trust’s £910,000 claim. He ruled the insurer had mischaracterised when the cause of action accrued, rejecting its contention that it began when Peabody’s contractor, Vantage Design & Build Ltd, entered administration. In his ruling, Judge Mitchell concluded that time did not start to run on Vantage’s insolvency on 29 June 2016, but instead from the point—still to be fixed at trial—when Peabody was obliged to spend additional sums to finish the units because of that insolvency. Peabody commenced proceedings against its insurer in 2023. The association says NHBC declined to meet the costs of replacing the building contractor on its home-building project, notwithstanding that their policy included contractor insolvency cover for the expense of switching to a new...

Mergers The Commission approved: the purchase of shared control over Mekone Parent LLC and its subsidiaries, including Prometheus Group Holdings, LLC, by Advent International, L. P.......

Wesson ( Chair of Friends of Mill Road Bridge) v Cambridgeshire County Council [2024] EWHC 1068 ( Admin) What are the practical implications of this case? Two practical themes arise. The first concerns procedure for challenges under RTRA 1984, Sch 9, para 35, where the court delivered two generally applicable points. On summary judgment, the discussion at paras [7]–[11] culminates in a caution at paras [10]–[11]: in many instances the correct course is to proceed straight to a substantive hearing. It is a clear indication that using a summary judgment application in para [35] matters as a surrogate for a judicial review permission stage is inappropriate. The second point reiterates that an Order impugned under para [35] will only be quashed if, in accordance with RTRA 1984, Sch 9, para 36, the applicant has suffered substantial prejudice (see paras...

However, the Association of British Insurers ( ABI) noted that prices remain 21% above the second quarter of 2023, when the average was £511, despite premiums dropping in the equivalent spell in 2024. After what has been a testing time for both insurers and policyholders, we are heartened to witness a slowing in the pace of motor cover increases as recent claims expenses begin to stabilise, said Mervyn Skeet, the trade body’s director of general insurance policy. While that is overall positive, our efforts must continue to concentrate on claims costs, in the interests of consumers......

Peter Marano v HMRC [2024] EWCA Civ 876 The underlying dispute concerned whether the taxpayer was liable to penalties under Schedule 55 to the Finance Act 2009 ( FA 2009) for the late submission of a self-assessment tax return for the 2012–13 tax year. On or after 6 April 2013, HMRC served Mr Marano with a notice (the Notice) to file a self-assessment return for 2012–13, pursuant to section 8 of the Taxes Management Act 1970 ( TMA 1970). He did not deliver a return by the filing date of 31 January 2014, and so became liable to penalties under Schedule 55 for that failure. Accordingly, on 18 February 2014 HMRC issued late filing penalties. In November 2014, HMRC made a determination based on the figures contained in Mr Marano’s earlier years’ returns and levied a late filing penalty by reference to that...

Sian Participation Corp (in liquidation) v Halimeda International Ltd ( Virgin Islands) [2024] UKPC 16 What are the practical implications of this case? Encouragingly for creditors, a debtor can no longer derail a winding-up petition simply by declining to acknowledge liability at all. Absent a dispute that is bona fide and materially arguable, creditors may proceed to liquidate a company without contrived postponement, facilitating the realisation of assets for return to the wider creditor body. If, however, the indebtedness is truly contested on substantive grounds, the matter must be referred to arbitration in the ordinary course before any winding-up application is properly advanced. Contracting parties should therefore think carefully about the reach of arbitration clauses included within their contracts and agreements. Although this outcome holds where wide, general wording is used, other issues could readily arise if an arbitration clause is drafted expressly to...

Barry O' Dwyer, group chief executive officer at the insurer On 2 August 2024, O' Dwyer urged the government not to regard the UK's pensions industry solely as a growth engine. He noted that with about £3trn invested in UK pensions, it is reasonable to see the sector as capable of making a strong contribution to UK economic performance. However, he emphasised that the core duty of pensions is to fund customers' retirement... In July, Chancellor Rachel Reeves began the first phase of her government's pensions review, aimed at securing greater investment from the defined contribution sector into the economy......

Guidance on the UK’s new failure to prevent fraud offence Guidance on the UK’s new failure to prevent fraud offence is expected within the next three months, raising the prospect that the offence could take effect by April next year, according to MLex. The Economic Crime and Corporate Transparency Act 2023, approved by UK legislators last October, contains a clause requiring large businesses to establish ‘reasonable procedures’ to shield themselves from prosecution for failing to prevent fraud. The approach reflects the UK’s Bribery Act 2010, under which corporates may face prosecution for failing to prevent bribery. This closely mirrors the existing legal framework......

Hayes became the emblematic figure of the UK’s benchmark-rate rigging scandal after his 2015 conviction for conspiring to defraud the measure used to determine what banks pay to borrow. He initially received a 14‑year sentence, cut to 11, and left prison on licence in 2021. From day one, he has sought to quash the verdict, insisting prosecutors in the UK misread the case. Following years of setbacks, he finally secured an opportunity earlier this year to try to convince appeal judges. They rejected the bid, yet kept a path open to the Supreme Court — and in late July the country’s highest court granted him leave to appeal. Days before that decision was made public, Hayes spoke with MLex about his continuing effort to clear his name. He underlined that his fight goes beyond merely getting the Supreme Court to hear it, saying he...

Providence Building Services Ltd v Hexagon Housing Association Ltd [2023] EWHC 2965 ( TCC) What are the practical implications of this case? The decision offers a noteworthy reading of the intended operation of clauses 8.9.3 and 8.9.4 of the JCT Design and Build Contract. It highlights that, although the termination machinery may appear, on its face, less advantageous to the Contractor in safeguarding cashflow, the Contractor retains several other tools to offset that disadvantage. The court also emphasised that the parties are bound by the language they selected, declining to prefer arguments based on ‘business common sense’ over the actual wording when construing the clause... What was the background? Providence Building Services Ltd (‘ Providence’) entered into a construction contract adopting the JCT Design and Build Contract 2016 (as amended by a Schedule of Amendments) with Hexagon Housing Association Ltd (‘ Hexagon’) in February 2019, for the...

The consultancy polled over 210 UK DC retirement savings schemes, with total assets above £60bn and over one million members in total, for its 2024 survey. The study also highlighted serious shortcomings in how these schemes are managed and planned across these areas, and nearly half—47%—of participants indicated they are weighing alterations to their DC arrangements, the survey found. ' Given the relentless pace of change across the UK pensions arena, distinguishing the important from the urgent can be difficult, and shifting from merely ticking regulatory boxes to concentrating on the work that best enhances outcomes for DC savers is essential,' said Ben Roe, senior partner at Aon......

What, then, happens when an insurance policyholder’s entitlement to cover hinges on an asserted drafting slip in the policy text, such that the document fails to capture the parties’ true or objective intention? This piece considers two Court of Appeal of England and Wales authorities— Project Angel Bidco Ltd ( In Administration) v Axis Managing Agency Ltd and Bellini ( N/ E) Ltd v Brit UW Ltd—delivered in May and April 2024, respectively—which clarify and shed light on the court’s stance when faced with that problem and comparable scenarios arising in practice. Those rulings make plain that the court is disinclined to correct supposed errors by interpretation unless there is a plainly obvious mistake with an equally obvious cure, readily apparent on the face of the wording. Before turning to the recent Court of Appeal judgments, it is helpful to revisit the High Court of...

Mergers CMA provisionally clears T& L Sugars/ Tereos merger The CMA has published provisional findings within its phase 2 review of the proposed purchase by T& L Sugars Limited ( TLS) of the UK packaging and distribution facility and business-to-consumer ( B2C) operations (the Target) run by Tereos United Kingdom and Ireland Limited, acquired from Tereos SCA ( Tereos). TLS is a sugar manufacturer that processes and supplies sugar and allied products (including the Tate and Lyle brand) to supermarkets and to customers, such as grocery wholesalers, hotels and cafes, in the UK......

Private actions The CAT issued four orders in damages proceedings arising from the European Commission’s Trucks ( AT.39824) decision, pursued against certain truck manufacturers. The cases are: BFS Group Limited v DAF Trucks Limited and others Enterprise Rent-a- Car UK Limited v DAF Limited and others AFB Grain Products Limited and others v DAF Trucks Limited and others Lafarge Holcim Limited and others v Aktiebolaget Volvo (publ) and others In every matter, the order records that the claimants have settled with some of the defendants—see further, BFS Group Limited and another v DAF Trucks Limited and others (order), Enterprise Rent-a- Care UK Limited v DAF Limited and others (order), AFB Grain Products Limited and others v DAF Trucks and others (order) and Lafarge Holcim Limited and others v Aktiebolaget Volvo (publ) and others (order). Note— For all live private actions in the UK that have...

Salary increases On 4 April 2024, all three key salary benchmarks rose for standard, new Skilled Worker applications. To sponsor an individual on this route, employers must now pay whichever is highest of the following: the general minimum salary threshold, lifted from £26,200 to £38,700 gross a year the hourly floor, increased from £10.75 to £15.88 per hour the going rate, which shifted from the 25th percentile in the occupation code under the Annual Survey of Hours and Earnings ( ASHE) to the 50th percentile (the median) Because of that final adjustment, certain minimum rates jumped by 50 per cent or more, with many new figures exceeding both the threshold salary and prevailing market pay, especially for roles outside major cities where remuneration is often lower. Note too that the going rate is typically calculated on a 37.5-hour working week; where...

N Notaro Homes Ltd v Keirle and others [2024] EAT 122 Employment Appeal Tribunal Judge Simon Auerbach upheld the decision of the tribunal below, confirming it was correct not to cut the monetary awards due to ex-employees of the care home operator N Notaro Homes Ltd. He agreed the tribunal had properly determined that this was an uncommon matter in which a reduction would not be just and equitable. Judge Auerbach described it as the kind of exceptional situation where, for every claimant, the tribunal could properly find that their compensatory sums should remain untouched, as lowering them would not meet the just and equitable standard, and therefore the original compensation should stand. Without reduction......

This creates a significant legal exposure for UK businesses that import cotton from the Xinjiang Uyghur Autonomous Region ( XUAR), alongside other higher-risk goods like cocoa, sugar and cobalt, too. This piece examines the Court of Appeal’s judgment and considers what it means in practice for businesses, including in relation to companies’ supply chain due diligence. Background In April 2020, the World Uyghur Congress ( WUC) submitted material to the NCA alleging that grave human rights violations were occurring in the XUAR and asserting that cotton from the region was likely the product of forced labour. The NCA refused to open an inquiry, saying it was not obliged to act unless a particular consignment of cotton had been identified as criminal property. It further maintained that where a party in the supply chain had paid adequate consideration, ie, market value, the goods could no longer...

It is not only dedicated AI watchdogs drawing attention; financial legislators across Europe are now deeply engaged. In April 2024, the UK’s Financial Conduct Authority ( FCA) and the Bank of England set out strategic plans for supervising AI, and from January 2025 the EU’s Digital Operational Resilience Act will apply, bringing fresh duties to safeguard the robustness and security of technology systems, including AI. Data protection authorities have moved swiftly too, issuing guidance, opinions and enforcement measures. This piece summarises the principal laws and regulations applying to AI at fintech companies and offers practical suggestions on how to navigate them, and where to focus limited legal and compliance resources. Background AI has transformed fintech, driving major progress across use cases including fraud detection, anti‑money laundering, onboarding, personalised products and forecasting. Recent rapid advances present abundant opportunities, further boosting the efficiency, accuracy and...

Sponsor licence revocation challenges: no need for a global assessment During the first half of 2024, the Administrative Court has delivered a series of inconsistent rulings on whether the Secretary of State for the Home Department ( SSHD) must undertake a global assessment when deciding to revoke a sponsor licence. All the claims have featured care providers running care homes who have brought challenges to revocation decisions taken by the SSHD. In R ( Supporting Care Ltd) v SSHD [2024] EWHC 68 ( Admin) (19 January 2024), His Honour Judge Siddique quashed the SSHD’s decision on the single basis that he had ‘failed to conduct an adequately reasoned global assessment of all relevant considerations in deciding whether to revoke or downgrade the sponsor licence.’ (para [55]). The dispute concerned entirely the necessity for such holistic evaluation in sponsor licence revocation...

What are the practical implications of this case? This ruling is significant for practitioners representing parties in arbitrations and in challenges to arbitral awards. For years there has been uncertainty over whether costs orders are captured by the restrictive appeal routes in AA 1996, ss 67(4) and 68(4). Those provisions state that a party cannot appeal a judgment under those sections without permission from the court that issued it. In P& ID, the Court of Appeal has now confirmed that costs orders sit outside the scope of these sections. Advisers should factor this in when acting for a party that has lost a section 67 or section 68 application: even if the substantive outcome is not appealable, there may still be aspects—such as costs—that remain open to challenge. What was the background? In March 2023, Knowles J held that Nigeria’s challenge to two arbitral awards under AA 1996, s 68...