Legal News

Potanina v Potanin [2024] UKSC 3, [2024] All ER ( D) 126 ( Jan) What are the practical implications of this case? Under Part III of the MFPA 1984, courts in England and Wales possess the power to order financial remedies after an overseas divorce. By virtue of section 13 of that Act, permission must first be secured before an application for financial relief may properly be issued. The appeal scrutinised how the statutory leave, or permission, filter in the legislation ought to be read alongside the existing case law, and it examined fundamental principles of procedural fairness. A majority of the Supreme Court determined that the entrenched practice for addressing applications for leave had contravened the essential requirement of procedural fairness. The focus was procedural fairness at leave stage. Does it follow, therefore, that the outcome will be a reduction in parties seeking to...

Miller v University of Bristol ( ET/1400780/2022) At the Bristol Employment Tribunal on 5 February 2024, it was determined that former University of Bristol political sociology professor David Miller’s anti‑ Zionist stance constitutes a belief meriting respect within a democratic society. Judge Rohan Pirani further concluded that the university’s choice to dismiss Miller was a disproportionate response to concerns about safeguarding its reputation amid criticism of his remarks. Emphasising academic freedom, Judge Pirani stated that a university should anticipate and withstand scrutiny and reputational turbulence arising when academics lawfully express and explore ideas connected to their scholarship and fields of expertise. According to the judgment, Miller served as a professor of political sociology from September 2018 until his dismissal in October 2021, which followed a surge of complaints regarding anti‑ Zionist comments he made earlier that year......

A European Commission spokeswoman, Anitta Hipper, declined to address Law360’s query about a Belgian plan to treat frozen, immobilised Russian state holdings as security for borrowing. Proceeds would fund Ukraine’s rebuilding following Russia’s devastating, full-scale assault on the country. “ Talks are under way within the G7 framework, centred on the potential seizure of immobilised assets of the Russian central bank,” Hipper wrote in an email. “ The Commission is prepared to examine the different options under consideration. What matters is that any approach can be carried out on a robust legal basis and command wide international backing,” she added. She offered no further detail at present......

See Q& A: A testator owns shares in the parent company of a trading group of companies. A testator holding shares in the holding company of a trading group may find the share value restricted for business property relief ( BPR) purposes because of excepted assets or the group company provisions, with the result that full relief is not achieved. One Lexis Nexis Will precedent leaves property qualifying for BPR at 100% on discretionary trusts. Can that wording be modified to capture property that qualifies for BPR at a lower percentage? For this Q& A, the assumed Will precedent is: Will—legacy of business property on discretionary trust, residue to spouse absolutely, then to children absolutely. The starting point is that BPR is available only at two statutory rates—100% or 50%—provided the necessary conditions are satisfied in each situation. As at 5 February 2024, there is no...

Antitrust Commission sends Statement of Objections to PPC concerning predatory pricing in the Greek wholesale electricity market The Commission has issued a Statement of Objections to Greek electricity provider Public Power Corporation ( PPC), alleging that, from 2013 to 2019, it supplied power on the Greek wholesale market below cost, thereby excluding key competitors, in breach of Article 102 TFEU. The Commission’s preliminary assessment is that PPC: occupies a dominant position in the interconnected Greek wholesale electricity market; and abused that dominance by offering electricity from its thermal plants (lignite and gas) at prices beneath their variable costs — the costs that rise with the volume of electricity PPC generates......

Tracker of Part 26 scheme/ Part 26A restructuring plan hearing dates 2024 [ Archived] Consult Practice Note: Tracker of Part 26 scheme/ Part 26A restructuring plan hearing dates 2024 [ Archived]. For outlines of restructuring plans and schemes of arrangement, see: Restructuring plan—overview and Schemes of arrangement—overview......

Re Atento UK Ltd [2023] EWHC 3076 ( Ch) What are the practical implications of this case? This decision sits among the few published rulings where the court has examined applications to approve Part 26A restructuring plans under CA 2006, s 901F. The judgment predates the Court of Appeal’s decision in Adler [2024] EWCA Civ 24 and makes no mention of it. Even so, it confirms that, where plans do not entail cross-class cram downs and secure strong majorities across creditor groupings, the court will accord substantial weight to creditor views and is inclined towards granting sanction. The ruling also distils concise guidance—drawing on Part 26 scheme jurisprudence—on the proper approach to restructuring plans that feature an international element. What was the background? Two companies within the Atento group—described in the judgment as Atento UK and the Issuer (together, the Plan...

BMW Bank and others, Joined Cases C‑38/21, C‑47/21 and C‑232/21 What are the practical implications of this case? In these circumstances, a consumer’s scope to cancel a finance arrangement for leasing a vehicle (personal contract hire, PCH) appears more constrained than the right to withdraw from finance used to purchase a vehicle (personal contract purchase, PCP), in practice. It is also noteworthy to consider how the court might approach another widely used form of vehicle finance brokered through a dealership, namely PCP. Under that structure, the customer pays an initial upfront amount followed by a predetermined series of monthly instalments. A Guaranteed Future Value ( GFV)—ie an amount calculated from the estimated residual value of the car at the end of the agreement—is fixed from the outset when the contract begins. On expiry of the term, the consumer can either pay the ‘balloon’, ie the GFV, to...

Tyson International Company Ltd applicant and Partner Reinsurance Europe SE, [2023] EWHC 3243 ( Comm) What are the practical implications of this case? This judgment stands out for three main reasons of practical significance. First, it addresses how to resolve clashing jurisdiction clauses within a suite of contracts. Secondly, it examines whether market custom and practice can influence the construction and understanding of a contract. Finally, it surveys the principles to be applied when dealing with anti-arbitration and anti-suit injunctions in this context. Where a single contract contains both an exclusive jurisdiction provision in favour of a court and an arbitration clause provision, English courts have previously read that seemingly pathological pairing as signifying that the designated court has supervisory jurisdiction as the seat of the arbitration, with the merits of the dispute to be determined by the stipulated arbitral process. This decision...

Additional developments In addition to the full coverage in the Financial Services news feed on 7 February 2024, subscribers may wish to note the following further developments: AFME: UK plans for stablecoins should spur DLT-driven capital markets Insurance Europe: Insurers voice serious concerns about EU tax......

Upper Tribunal ( UT) Judge Swami Raghavan ruled on 5 February 2024 that the Financial Conduct Authority's ( FCA) requirements affecting Nvayo Ltd's ability to transact new and existing business and use of its own assets would remain in place. According to the tribunal, Nvayo’s chief executive, Christopher Scanlon, was detained in the US in May 2023 on allegations of conspiring to direct and possess an unlicensed money‑transmitting business, contrary to US federal law. The UT added, in late 2023, the FCA set conditions on Nvayo which will persist until the regulator’s concerns about Scanlon and adherence to anti‑money laundering rules are allayed......

Subsidy control The Subsidy Advice Unit has agreed to prepare a report at the request of the Arts Council of England on the proposed funding for the English National Opera—see the case page for more. The Subsidy Advice Unit has also agreed to produce a report following a request from Belfast City Council regarding a proposed subsidy for the Gobbins Phase 2 project—see the case page for details. Note— For all matters referred to the Subsidy Advice Unit under the Subsidy Control Act 2022, please see the UK subsidy control—cases tracker. Upcoming dates For dates of forthcoming UK competition developments, refer to the UK Competition calendar......

Aercap Ireland Ltd v Aig Europe SA and other companies [2024] EWHC 144 ( Comm) What are the practical implications of this case? The judgment offers strong comfort that brokers may share Russian aircraft lessees’ insurance and reinsurance policies and related paperwork to help determine the scope of cover in the Russian aviation disputes without breaching sanctions, even absent a court order. Butcher J identified three principal strands, likely of near-universal relevance in these matters, that underpin voluntary disclosure: The materials were not being provided to a person connected with Russia; The disclosure concerned policies/claims that sat outside the sanctions framework; The disclosure did not enable the use of aviation goods within Russia. Whether brokers will feel sufficiently assured by this obiter analysis to disclose voluntarily remains uncertain. Strictly, the ruling is persuasive, not determinative; the application before the court involved an order rather than a...

Hippodrome Casino Ltd v HMRC [2024] UKUT 27 ( TCC) Under the core partial exemption rules, VAT on overheads that cannot be directly tied to either taxable or exempt outputs must be apportioned to work out the recoverable element. The default apportionment is the standard method, which is essentially based on turnover. At times, this approach will not yield a fair outcome that reflects how the costs are actually consumed. Where the standard method’s result is markedly at odds with a fair, ‘use’-based outcome, the standard method override ( SMO) can be engaged. The taxpayer, Hippodrome, operated an entertainment complex offering a ‘ Las Vegas style experience’. The venue extended over five floors and included spaces for live gaming, gaming machines, bars, a restaurant, lounges, conference areas and a theatre. Hippodrome made a blend of exempt supplies (connected to gaming) and taxable supplies (for...

Fees for employment claims were scrapped in 2017 after the Supreme Court found they impeded access to justice and concluded the regime failed on affordability, proportionality and simplicity. Yet, nearly seven years on, the UK government is consulting on fresh proposals requiring workers to pay to lodge claims, reviving an approach many assumed was finished. Rachel Ward, managing associate at Lewis Silkin LLP, said the move 'came out of the blue', though it is no surprise ministers want to relieve pressure on a 'very pressured tribunal system'. ' Charges might prompt people to assess the strength of their claim more carefully before issuing, and could weed out those spurious claims with no realistic prospect anyway,' Ward noted. ' Alternatively, as the consultation suggests, they anticipate greater settlement via Acas rather than progression to a full hearing.' The...

The government has unveiled substantial reforms aimed at reducing employment-based immigration to the UK. At present, sponsorship under the Skilled Worker route requires pay that meets or exceeds all of the following: the general threshold (currently £26,200 per year) £10.75 per hour the ‘going rate’ for the role On 4 December 2023, the government announced a near 50% rise in the general threshold from £26,200 to £38,700 a year. On 21 December 2023, it further announced that individual occupation going rates will be raised in line with the latest national salary data. These measures are due to take effect in April 2024. Just how high could the new going rates be? Publicly available data has been analysed to forecast potential increases to going rates for several common occupation codes. What are going rates? Every eligible Skilled Worker role must be matched to a specific...

What is the US Foreign Extortion Prevention Act (or FEPA) and when did it come into force? On 22 December 2023, President Biden enacted the FEPA, after its approval by the US Congress as part of the Fiscal Year 2024 national defence authorisation legislation. The law reflects the President’s sustained commitment to confronting global corruption as a national security priority. It requires the US Attorney General to deliver an annual, publicly accessible report to Congress summarising major Department of Justice ( DOJ) actions under FEPA, enabling Congress (and the public) to assess the effectiveness of the DOJ’s enforcement efforts year on year. That disclosure duty is expected to heighten pressure on the DOJ to bring cases in practice. FEPA widens the scope and reach of US anti‑bribery and corruption laws by expanding bribery offences to capture the ‘demand...

Boonyaem v Persons Unknown Category ( A) and others [2023] EWHC 3180 ( Comm) What are the practical implications of the case? There are a number of concrete takeaways for advisers and their clients, spanning interim relief, serving proceedings on unidentified parties, digital assets, and following the trail of those assets. The claimant asked the court to continue both a proprietary freezing order and a non‑proprietary worldwide freezing order; the court acceded in relation to the second and third defendants, but declined to do so against Persons Unknown Category ( A). The rationale was that orders aimed at defendants who are both unknown and unascertained cannot be enforced. That difficulty does not arise where defendants are unknown yet capable of being sufficiently identified. The ruling also reinforces the view that, in appropriate situations, cryptoassets may constitute “property” under the law of England and Wales. The...

High-ranked nations are ageing rapidly compared with lower-ranked ones, research by the International Longevity Centre in London has revealed. The analysis drew on the think tank’s Healthy Ageing and Prevention Index overall, which listed 121 countries in total in 2019 for its comparison. Among them were Switzerland in first place, Iceland in second, and the UK placed 16th in the index. It assessed the dependency ratio, a measure of the percentage of people aged 65 and over relative to working adults aged 15 to 64. A 20% ratio at a state pension age of 65 equates to five workers supporting each retiree in practice. However, projections of 50% by 2050 in some nations indicate there would be just one worker for every retiree by then, the Centre said......

Kopiosto ry v Telia Finland Oyj Case C-201/22 What are the practical implications of this case? The Court of Justice’s judgment materially shapes how CMOs pursue copyright enforcement across the EU. It makes clear that a CMO’s power to start infringement actions for rights holders is not an autonomous concept under EU law; instead, each Member State determines the position. A CMO’s ability will turn on: whether the Member State recognises the CMO as having a direct interest in the case; and whether the CMO enjoys standing either expressly under that State’s national law or under its general procedural rules. As a result, where some rights holders are covered by several CMOs operating in separate jurisdictions, the scope for those CMOs to bring proceedings on their behalf may differ from one country to another, depending on the forum and on whether the two conditions above are met. What was the...