Legal News

Two companies within Celestial Aviation, alongside SMBC Aviation Capital Ltd, have launched actions against their insurers over aircraft losses, following a significant ruling that struck out jurisdiction objections across numerous similar cases, as evidenced by two High Court filings in late April 2024. The insurers named include Allianz Global Corp & Specialty SE, Axis Specialty Europe SE and Liberty Mutual Insurance Europe SE. In March 2024, High Court Judge Andrew Henshaw decided that the insurers must confront claims linked to aircraft left stranded in Russia owing to the war in Ukraine, observing that a fair hearing was unlikely in the Russian courts. The Celestial Aviation companies are pursuing up to US$35.2m under their insurance policy for two aircraft which they say have been entirely lost to them......

By denying certiorari, the justices have ultimately made final and binding the Mississippi Supreme Court’s ruling from last year, which dismissed Mc Innis Electric Co’s contention that a judge, rather than an arbitrator, should decide whether its project-related claims are captured by an arbitration provision. Mc Innis, which lodged its certiorari request last month, had earlier entered into a subcontract on the vast scheme with the prime contractor, Brasfield & Gorrie LLC, and their agreement required any disputes to be resolved through arbitration under the American Arbitration Association’s Construction Industry Arbitration Rules. A conflict erupted in May 2020 when Brasfield & Gorrie ended the subcontract for an alleged breach. After that company moved to formally commence arbitration, Mc Innis brought this action, asserting the quarrel embraced matters outside the arbitration clause’s reach, including being compelled to carry on works despite the...

WH Holding Ltd v E20 Stadium LLP [2024] EWHC 817 ( Comm) What are the practical implications of this case? This decision offers practical appellate guidance on the criteria for a court to order, under CPR 5.4C(4), limits on a non-party’s access to statements of case placed on the court file. It explains the basis and approach the court should take. Parties applying to curtail access to statements of case (or non-parties contesting such curbs) should bear in mind the following: The starting position, founded on the open justice principle, is that non-parties ought to obtain access to statements of case once the defendant has lodged an acknowledgement of service or a defence Whether there has been any judicial engagement in the proceedings at the time of the application is immaterial......

NSI Government publishes updated guidance about exercise of the call-in power under the National Security and Investment Act The Cabinet Office has issued an updated section 3 statement, setting out how the Secretary of State expects to use the call-in power under the National Security and Investment Act 2021 ( NSI Act), which has been laid before Parliament. This update fulfils the Cabinet Office’s commitment made in the outcome to its call for evidence on 13 November 2023 regarding the NSI Act. While the refreshed statement retains a level of continuity with the 2021 version, it introduces several important revisions to clarify how the Government intends to apply the NSI Act’s powers. These revisions include additional detail on how risk is assessed in relation to: Trigger events – including when certain acquisitions may fall within the NSI Act, such as the...

Yet Ernst & Young’s ( EY) advisory consulting division noted that 18 alerts were issued in the first three months of 2024, still above the 14 recorded across the same period in 2023. According to the analysis, escalating costs, tighter credit conditions and contractual problems were among the factors pushing up the tally of warnings by companies, the research shows. ‘ Although the volume of profit warnings from companies with defined benefit pension plans has fallen for the first time in a year, the figure remains greater than at this point last year,’ said Karina Brookes, an EY- Parthenon partner, in the statement. She......

Mergers The Commission has received notifications for: Unicredit/ Alpha Bank Romania ( M.11546), under the simplified merger procedure; CVC/ Monbake ( M.11530), likewise under the simplified merger procedure. Note— For all live merger investigations before the Commission, please see the EU mergers—ongoing cases tracker. State aid The Commission approved, under EU State aid rules, a German scheme worth €1.7bn to support rail freight operators involved in single and group wagon transport—see Midday Express for more. The Commission also approved, under EU State aid rules, a French scheme valued at €120m to compensate downstream businesses, including poultry companies. ......

Lifestyle Equities CV and Another v Ahmed and Another [2024] UKSC 17 What are the practical implications of this case? The Supreme Court has delivered its long‑awaited ruling on the appeal and cross‑appeals in Lifestyle Equities CV v Ahmed, proceeding from Lord Justice Birss’s judgment in the Court of Appeal [2021] EWCA Civ 675. Lord Leggatt wrote for the court, with Lords Kitchen, Lloyd‑ Jones, Stephens and Richards agreeing. The judgment sets out a series of significant conclusions: Accessory liability (as a joint tortfeasor) in respect of a strict liability tort is not itself governed by the same strict standard. Conversely, an accessory must possess knowledge of the essential aspects of the tort to justify imposing joint liability on a person who has not themselves committed it. The identical test applies whether accessory liability is said to arise by procuring the tort or by...

Elphysic Ltd and other companies v HMRC [2024] UKFTT 00291 ( TC) What are the practical implications of this case? In a very detailed and comprehensive decision, the FTT concluded that the payroll arrangement in which the lead appellants participated, which split and disaggregated labour supplies across a web of thousands of linked MUCs, each with only a handful of staff, none of which operated independently and all subject to outside control, was an artificial construct aimed at avoiding tax, and that there were objective reasons to determine the lead appellants’ VAT registrations had been deployed for fraudulent ends. Against that backdrop, the lead appellants achieved a measure of, albeit limited, success on a pleading issue, and, in this context, the tribunal offered a helpful review of the relevant principles that apply when alleging dishonesty in pleadings. In this matter, however, the FTT...

Hugh Osmond and another v HMRC [2024] UKFTT 378 ( TC) The taxpayers were individuals resident in the UK and entrepreneurs, being serial entrepreneurs. They subscribed for shares qualifying under the EIS in a company named Xercise Ltd. The company had originally run a loss-making sports club operation, which was disposed of by sale. The taxpayers kept their stakes and retained the company, repurposing it as a corporate holding vehicle to back another business venture. When that venture was subsequently sold, they inserted a new parent company ( Xercise2 Ltd), intended to inherit the EIS status, and Xercise Ltd was then wound up thereafter. In March 2015, the taxpayers and Xercise2 Ltd made share buy-backs, and the taxpayers contended that the sums they received were a capital return, fully relieved from CGT under EIS disposal relief, so no chargeable gain arose. HMRC......

R (oao Sensor Solutions Ltd) v HMRC [2024] EWHC 1119 ( Admin) Sensor Solutions participated in an employer‑financed retirement benefit scheme ( EFRBS) in the 2012–13 tax year. After the loan charge provisions came into force in 2017, the company entered a voluntary settlement in relation to the scheme in 2019. In April 2021, Sensor Solutions sought repayment of that settlement through the DRRS, which was put in place by section 20 of the Finance Act 2020 ( FA 2020) following the Morse review into the loan charge. HMRC refused to repay on the ground that the company had not provided a ‘reasonable disclosure’ of the scheme in its tax returns, as required by the legislation, contending the statutory disclosure condition had not been met. That refusal was upheld on an internal review conducted by another HMRC officer. The company therefore issued judicial review...

With immediate effect, JAMS says new rules tackle the surge in AI use and smart contracts, which function as automated market-makers on crypto exchanges to set investor payouts, according to JAMS' announcement. In a statement, CEO Chris Poole said the rules aim to address the steep growth of artificial intelligence systems and the meeting point between AI technology and dispute resolution. Poole added that JAMS remains determined to lead on fast-changing technology and to offer resilient, progressive solutions for the lawyers and parties it serves and supports alike......

Abbey and others v (1) Tesco Stores Ltd, (2) Element and others [2024] EAT 76 Employment Appeal Tribunal Judge Jennifer Eady stated that around 6,000 claimants represented by KP Law Ltd were lawfully refused access to emails, letters and documents exchanged between Tesco and two other claimant groups represented by Leigh Day and Harcus Parker Ltd. The KP cohort comprised predominantly female shop workers. Although the KP-represented workers argued there is ‘no good reason’ to treat them differently from the remaining 41,000 claimants, from whom the Employment Tribunal has selected its sample cases, Judge Eady was not persuaded there was any basis to lift, even in part, the stay affecting the KP claims......

Mergers The CMA has invited comments on the expected purchase by Roche Diagnostics Limited of certain businesses owned by Lumira Dx Group Limited (in administration) and Lumira Dx International Limited (in administration)—see further, case page. NOTE— For all live mergers before the CMA, see further, UK mergers—ongoing cases tracker. Subsidy control The Subsidy Advice Unit has accepted a request to produce a report advising the Office for Life Sciences on its proposed Life Sciences Innovative Manufacturing Fund subsidy scheme for 2025–2030—see further, case page. NOTE— For all decisions referred to the Subsidy Advice Unit under the Subsidy Control Act 2022, see further, UK subsidy control—cases tracker. Market investigations The CMA has shared a speech by Martin Coleman, Non- Executive Director and Panel Chair, delivered at the Swedish Competition Authority’s Pros and Cons Conference, marking 75 years of the UK’s experience with market...

Purkiss (as liquidator of Ethos Solutions Ltd) v Kennedy and others [2024] EWHC 1081 ( Ch) What are the practical implications of this case? This judgment clarifies the scope of IA 1986, s 423 and confirms that tax avoidance, standing alone, is not an unlawful purpose. The respondents received monies they should not have obtained by joining a failed tax avoidance arrangement; yet, without additional evidence, IA 1986, s 423 was not the appropriate avenue to recover those sums What was the background? The Company was an umbrella enterprise established in 2008 that promoted and operated a tax avoidance scheme (the Scheme) intended to enable self‑employed participants to avoid paying income tax and national insurance contributions ( NICs) on their earnings. Under the Scheme, individuals who had supplied services to an end user as consultants or independent contractors became employees of the Company and then...

On 16 May 2024, Insurance Europe stated that, unlike the Late Payment Directive it is set to supersede, the new regulation would have direct effect across the EU, without needing transposition into domestic law. This, it warned, would generate legal uncertainty, as some national regimes permit longer deadlines than the regulation for settling certain claims. The draft measure would cut the existing 60-day payment window to 30 days. According to the trade association, for intricate claims it is frequently unworkable to establish so swiftly who bears liability, the loss amount and redress. Insurance Europe’s position paper argued that the insurance and reinsurance sector should be explicitly left outside the regulation’s scope. It also noted the mandatory payment clock would begin when debtors receive an invoice......

Jump to: General Brexit headlines Brexit SIs and sifting updates Made Brexit SIs laid in Parliament Draft Brexit SIs laid in Parliament Post- Brexit transition guidance Editor's picks—the practice area/sector view New and updated Brexit related content Updated Practice Note Lex Talk®Brexit: a Lexis®Nexis community Useful information General Brexit headlines This section highlights the principal overarching Brexit news headlines. ESC publishes letter criticising EU- UK Gibraltar agreement The European Scrutiny Committee ( ESC) has issued a letter from its Chair, Sir William Cash, to the Foreign Minister, David Rutley, criticising the proposed EU- UK arrangement governing Gibraltar’s frontier with Spain. He maintains that the plans described by ministers during an evidence session on 30 April 2024 amount to a ‘serious diminution of UK sovereignty’. The correspondence also questions how UK nationals and...

Private actions Court of Appeal dismisses Sports Direct’s appeal regarding CAT’s refusal to grant injunction about the supply of Newcastle United replica kit The Court of Appeal has delivered its judgment in Sports Direct.com Retail Ltd v Newcastle United Football Club Ltd & Anor, arising from an application challenging the CAT’s ruling of 12 April 2024 that declined to grant Sports Direct an interim injunction compelling Newcastle United Football Company Limited and Newcastle United Limited (together, Newcastle United) to provide Sports Direct with replica football kit (the CAT’s 2024 ruling). The Court of Appeal upheld the CAT’s 2024 ruling, dismissing Sports Direct’s appeal, but determined that the CAT was wrong to conclude there was no serious issue to be tried......

On 15 May 2024, other consulting firms issued almost identical appeals for unambiguous AI regulation to a parliamentary committee for Ireland’s enterprise and employment ministry. As the European base for many of the biggest technology companies, Ireland will apply the EU AI Act to them, with the exception of general‑purpose AI, which will be supervised directly by the AI Office under the European Commission. The consultants argued this should serve as a national advantage. EU AI Act ripple effect The EU AI Act is anticipated to take effect by mid‑ July 2024; however, the law leaves a large share of compliance assessment to companies themselves. There is ongoing debate about whether the Act will prove influential beyond the bloc, as the General Data Protection Regulation ( GDPR) did before. Although many do not expect the same level of sway, Hilary O’ Meara, managing director for...

Suitability of B& B accommodation for homeless applicants ( R ( Pickford) v Sandwell MBC) R (on the application of Rebecca Pickford) v Sandwell Metropolitan Borough Council [2024] EWHC 756 ( Admin) What are the practical implications of this case? Government figures show that by the end of 2023, 112,660 households were living in temporary accommodation supplied by local housing authorities in England under HA 1996, Pt 7. That represents a 12% rise on year-end 2022 and amounts to more than double the total at the end of 2010. Within those households are 145,800 children. As the judgment observes, some have characterised the situation as a temporary accommodation crisis. Councils are increasingly struggling to secure suitable interim housing for both single people and families, prompting greater reliance on hotels and bed and breakfast options. By late 2023, 15,950 households were placed in such...

FTT examines whether purported options are truly options for capital gains tax purposes ( Krishnamohan & another v HMRC). Krishnamohan and another v Revenue and Customs Commissioners [2024] UKFTT 346 ( TC) What are the practical implications of this case? In probing the essence of what an option actually is, this ruling will attract attention across numerous tax and non-tax fields, spanning commercial, corporate and real estate settings. Even within tax alone, the presence or absence of an option in a given arrangement can affect the operation of multiple taxes. By way of illustration, Landmaster Investment Ltd & another v HMRC [2023] UKFTT 736 ( TC) highlights how characterising an agreement as an ‘option’ can matter for SDLT, and likewise demonstrates the resort to non-tax authorities when determining the meaning of an option. The Tribunal’s conclusion here turned on what it considered a...