Monday, December 21, 2020
In the third (and final) of our blog series on recent CVA cases, in
Rhino Enterprises Properties Ltd & Anor [2020] EWHC 2370 (Ch), the High Court gave permission for misfeasance proceedings to be brought against two former joint administrators. This was despite an approved Company Voluntary Arrangement (“
CVA”) containing a clause releasing the joint administrators from liability.
The Court held it was ‘at least strongly arguable’ that CVAs were not contracts for the purpose of s.1(1) of the Contracts (Rights of Third Parties) Act 1999 (the “
1999 Act”) and that its terms could not be enforced by non-parties.
The dispute in brief