Recent Case Studies Where Misfeasance is Alleged

As insolvency litigation specialists, we regularly deal with allegations of Misfeasance, helping directors who are faced with Misfeasance Claims. This article features examples of a number of Misfeasance cases that NDP is dealing with at this time, which give an idea of the sums that can be involved in Misfeasance claims and how they can arise.

1. A Misfeasance Claim for c. £1 million for Preference Payments

We are advising directors on a Misfeasance Claim brought by the liquidator which alleges that the directors caused or allowed their company to declare a dividend, effect the set-off of the dividend and make loan repayments in the months leading up to the company’s liquidation, and in so doing breached the fiduciary duties they owed to the company. The Liquidator is seeking repayment of approaching £1 million, along with substantial interest payments and legal costs. Click here for the full case study and how we approach Misfeasance Claims.

2. A Misfeasance Claim for £1.6m

We are acting for the directors of a failed marine engineering business, trading in the North East, in relation to misfeasance claims made against them by the liquidator seeking repayment of £1.6m. These claims arise from an alleged breach of directors’ duties and Misfeasance, out of: a. An investment made by the directors into a financial product that benefitted its directors and the company, in the months prior to liquidation; and b. Payments made by the company to associated creditors, in the months prior to liquidation.

3. A Misfeasance Claim from The Liquidator for £375,000

We are acting for the former directors of a construction company, now in liquidation, where the liquidator seeks repayment of £375,000, being payments made from the company to another company controlled by the same directors, in the 18 months prior to the liquidation.  Allegations of Preference and Misfeasance are made against the directors.

4. A Misfeasance Claim from the Liquidator for £650,000

Acting for the directors of a failed limited company that traded in the construction sector, where the liquidator is pursuing recovery of £650,000 of what are said to be Preference payments to the directors and their family, in the 4 months before liquidation.

5. A Misfeasance Claim for £550,000 for unpaid taxes

We are acting for the directors of a failed retail business where the liquidator is pursuing recovery from the directors of £550,000, being the amount of taxes that went unpaid to HMRC by the company when it ceased trading.  The liquidator alleges Misfeasance and Wrongful Trading (section 214 Insolvency Act 1986) on the facts of this case.

If You are Facing a Misfeasance Claim, we can help

At NDP, with over 100 years of combined team experience, we are well used to dealing with misfeasance claims by liquidators against directors and shareholders.  We know the legal, commercial and tactical steps to take to try and resolve claims as quickly and effectively as possible. If you, or your client, are facing a misfeasance claim, call us on 0121 200 7040 or contact us for an initial free chat. No hole is too deep for us to help, but the earlier you get in touch, the more we can do to help.