R3 Survey on the effect of the Jackson Reforms
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Firm
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For the purposes of the survey please consider the following general points:
1 “Insolvency Litigation” refers to any form of litigation engaged in by an office holder designed to increase assets available for distribution amongst creditors. Actual proceedings may or may not have been issued. The proceedings may have been office holder actions such as transactions at an undervalue, or actions on behalf of the Insolvent Estate such as breach of duty/contract or possession and sale. The matter may have settled either before or after proceedings were issued.
2 “Insolvent Estates” refers to companies in liquidation or administration and individuals who have been made bankrupt.
3 “The Survey Period” is limited to Insolvency Litigation which began in the calendar years 2009, 2010 and 2011. For these purposes, litigation begins when proceedings are issued or when a sanction application is made to the Secretary of State (or the court or creditors).
4 * asks you to delete which is not applicable
Part A
Were you involved with any Insolvent Estates which engaged in successful Insolvency Litigation which involved the use of a Conditional Fee Agreement (“CFA”) during the Survey Period? YES / NO*
If NO, please briefly explain the reasons why (e.g. never came across a relevant case, creditors not in support, cases too uncertain, cases too low level in terms of money to warrant action, litigation unsuccessful).
If YES, please answer the following general questions as accurately as possible IN RELATION TO YOUR INDIVIDUAL CASELOAD prior to moving onto Part B.
1 Approximately how many CFA-backed cases per annum, with which you are involved, require the sanction of the Secretary of State?
2 Approximately how many CFA-backed cases per annum, with which you are involved, do not require such sanction?
3 Approximately how much value (in total) per annum is brought into Insolvent Estates, with which you are involved, by CFA-backed actions?
4 Approximately how many per annum of the total number of these CFA-backed cases settle prior to a hearing?
5 Approximately how many per annum of the cases which settle would not, in your opinion, settle without the use of a CFA with recoverable uplift and/or recoverable provision for adverse costs such as an After-The-Event (“ATE”) insurance premium?
6 Approximately how many per annum of the total number of CFA-backed cases (whether or not they settle) would not, in your opinion, be possible without the use of a CFA with recoverable uplift and/or recoverable provision for adverse costs such as an ATE insurance premium?
Part B
Please complete the following table 3 times with separate examples of Insolvency Litigation which took place during the Survey Period. Please select cases which are typical of your case portfolio.
If you are unable to complete 3 please complete as many as possible.
If it saves time please do feel free, instead of completing the table for each case, to email copies of relevant progress or final reports which have been provided to creditors, the court and/or Companies House. Her Majesty’s Courts and Tribunals Service has consented to practitioners providing this information for the purposes of this research project.
If you are able to complete more than 3 copies of the table, please “copy and paste” the table the appropriate number of times.
Type of Insolvent Estate
Cause of Action
Was the sanction of the creditors, the Secretary of State or the court required? / YES / NO*
(If YES, please specify whose sanction was requested)
Was the Insolvency Litigation funded by a third party funder? / YES / NO / Partly*
If YES or Partly, what percentage of the proceeds of the action was recovered by the Insolvent Estate?
Was the case settled? / YES / NO*
If YES, at what stage was the matter settled?
What was the ultimate value to the Insolvent Estate of the Insolvency Litigation?
How much of this value was available for distribution to unsecured creditors?
What was the total amount available for distribution to the unsecured creditors?
How much was distributed to public body creditors (e.g. HMRC or local authorities)?
What was the total basic fee charged by the legal team under the CFA?
What was the percentage of the CFA uplift?
Did you take out ATE insurance? / YES / NO*
If YES, how much was the premium?
Would this case have run if either the CFA uplift or ATE insurance premium had not been recoverable? / YES/NO*
If NO, what would you have done instead?
Name of Insolvent Estate (and, if possible the court reference number)/Project Name
Type of Insolvent Estate
Cause of Action
Was the sanction of the creditors, the Secretary of State or the court required? / YES / NO*
(If YES, please specify whose sanction was requested)
Was the Insolvency Litigation funded by a third party funder? / YES / NO / Partly*
If YES or Partly, what percentage of the proceeds of the action was recovered by the Insolvent Estate?
Was the case settled? / YES / NO*
If YES, at what stage was the matter settled?
What was the ultimate value to the Insolvent Estate of the Insolvency Litigation?
How much of this value was available for distribution to unsecured creditors?
What was the total amount available for distribution to the unsecured creditors?
How much was distributed to public body creditors (e.g. HMRC or local authorities)?
What was the total basic fee charged by the legal team under the CFA?
What was the percentage of the CFA uplift?
Did you take out ATE insurance? / YES / NO*
If YES, how much was the premium?
Would this case have run if either the CFA uplift or ATE insurance premium had not been recoverable? / YES/NO*
If NO, what would you have done instead?
Name of Insolvent Estate (and, if possible the court reference number)/Project Name
Type of Insolvent Estate
Cause of Action
Was the sanction of the creditors, the Secretary of State or the court required? / YES / NO*
(If YES, please specify whose sanction was requested)
Was the Insolvency Litigation funded by a third party funder? / YES / NO / Partly*
If YES or Partly, what percentage of the proceeds of the action was recovered by the Insolvent Estate?
Was the case settled? / YES / NO*
If YES, at what stage was the matter settled?
What was the ultimate value to the Insolvent Estate of the Insolvency Litigation?
How much of this value was available for distribution to unsecured creditors?
What was the total amount available for distribution to the unsecured creditors?
How much was distributed to public body creditors (e.g. HMRC or local authorities)?
What was the total basic fee charged by the legal team under the CFA?
What was the percentage of the CFA uplift?
Did you take out ATE insurance? / YES / NO*
If YES, how much was the premium?
Would this case have run if either the CFA uplift or ATE insurance premium had not been recoverable? / YES/NO*
If NO, what would you have done instead?
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R3 Survey on the effect of the Jackson Reforms