Insolvency for dispute resolution lawyers

The content in this subtopic is intended to assist a dispute resolution lawyer navigate the issues and wider strategic considerations which might arise in the context of disputes involving financially distressed and/or insolvent parties.

Impact of insolvency on litigation

It is important to observe at the outset that there is no general prohibition on issuing or pursuing any claims (whether original claims, additional claims or counterclaims) against ‘insolvent’ parties. Insolvency is a question of fact and individuals and companies may shift from solvency to insolvency at various times without any legal consequences as regards parties who may wish to bring claims against them. However, when a company or an individual enters into a formal insolvency process or debt management regime, restrictions may be imposed on the ability of other parties to bring, or continue with, claims against that company or individual.

For general guidance concerning the impact of insolvency processes on litigation, see: Claims against insolvent companies and individuals—overview, as well as Practice Notes:

•
What effect does an insolvency process have on ongoing litigation and arbitration proceedings?
•
Comparison table of corporate insolvency processes for dispute resolution practitioners
•
Comparison table of personal insolvency processes

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Dispute Resolution News

UK Supreme Court unveils new digital platform to modernise court processes

The UK Supreme Court (UKSC) and Judicial Committee of the Privy Council (JCPC) are set to launch new websites and a Case Management Portal on 4 December 2024. This digital transformation, part of a three year change programme, aims to revolutionise user interaction with the courts. The new system will enable digital filing of court documents, real-time case tracking and improved accessibility for all users, including litigants in person. The initiative, developed in collaboration with Capgemini and Q5, has undergone extensive user testing and is designed to enhance both judicial functions and educational outreach. This modernisation effort seeks to establish the UKSC and JCPC as world-leading, transparent and user-centric judicial institutions.

CJC concludes comprehensive review of pre-action protocols with publication of final report (phase two)

The Civil Justice Council (CJC) has concluded its extensive review of pre-action protocols (PAPs) with the publication of its phase two report. The first phase of the final report, published in August 2023, examined the role of PAPs in the civil justice system and explored the potential for digitalising pre-action processes. The second phase was published in November 2024. In the second (and final) phase report the CJC has set out its recommendations for the reform of various existing PAPs, including those for Personal Injury, Housing, Judicial Review, Debt, Construction and Engineering, Professional Negligence and Media and Communications. The report also recommends the creation of two new PAPs, one for dealing with child abuse and one for Multi-Track Claims in the Business and Property Courts of England and Wales (with a draft included at Appendix 1).

175th Practice Direction update—in force 20 November 2024

The Master of the Rolls and the Parliamentary Under-Secretary of State for Justice have approved the 175th Practice Direction (PD) update to the Civil Procedure Rules (CPR). The amendments come into force on 20 November 2024. The 175th PD update contains amendments to the online Damages Claims Pilot under CPR PD 51ZB (the DCP), in order to correct a misalignment between the rules in CPR PD 51ZB and the operation of the DCP digital service, concerning the automatic dismissal of claims. CPR PD 51ZB is updated to state so that within four months of the date of issue of the claim, the claimant must not only notify the defendant of the claim and the claim details, but also notify the DCP that they have taken these steps to avoid automatic dismissal of the claim.

Dispute Resolution weekly highlights—21 November 2024

This week's edition of Dispute Resolution weekly highlights includes: the Ministry of Justice’s annual report and accounts for the financial year 2023–2024 and the Supreme Court decision in Secretary of State for the Department for Environment, Food and Rural Affairs and others v Public and Commercial Services Union (Contracts (Rights of Third Parties) Act 1999); dates for your diary; details of our most recently published content; and other information of general interest to dispute resolution practitioners.

View Dispute Resolution by content type :

News