Glasgow v ELS and others (Re Harlequin (SVG) Ltd) is a case that may interest after the event insurers and litigation funders, as well as insolvency practitioners dealing with the fruits of litigation.
The High Court considered claims for liens or other forms of security interests by ATE insurers that had insured costs risks in litigation between a St Vincent and the Grenadines hotel company and its former accountants. The litigation succeeded, but the SVG company became insolvent. The bankruptcy trustee (liquidator) agreed payments to litigation funders and to various advisers of the company, but, the insurers’ priority agreement being ineffective because of drafting error, they sought recognition of a lien or a claim based on ex parte James and the trustee disputed this claim. Mr Robin Dicker QC sitting as a Deputy High Court Judge found in favour of the bankruptcy trustee. Andreas Gledhill QC acted for the trustee. Gerard Clarke acted for the ATE insurers and litigation funders .
Click here for the full judgment.