On 28 September 2015, HHJ Pelling QC gave judgment in the case of Maven Capital Partners & Capital for Enterprise Fund v Bibby Financial Services Ltd  EWHC 2593 (Ch), dismissing a conspiracy claim against Bibby. It was common ground that Bibby had agreed to provide funding to a business that was being restructured such that the assets of oldco (“Qire”) would be sold in administration to newco (“Qivox”), a company jointly-owned by a director/shareholder of Qire and its main supplier. Bibby agreed to purchase the debts of both Qire and Qivox, and to put Qire into administration; this meant that the claimants, who were senior lenders to Qire, would inevitably lose the sum of £2m.The case is a good example of why it is essential for claimants who wish to assert fraud or conspiracy to conduct a thorough analysis of their case before issuing proceedings. The Judge found that the conspiracy had not caused any loss to the claimants as Qire was hopelessly insolvent, a point maintained by Bibby. As damage is of the essence of a claim in conspiracy, Bibby always had a full defence to the claim, as the claimants found out to their cost.
1st October 2015