PWC v Saad Investments Ltd [2014] UKPC 35 & Singularis Holdings Ltd v PWC [2014] UKPC 36

PWC v Saad Investments Ltd [2014] UKPC 35 & Singularis Holdings Ltd v PWC [2014] UKPC 36

In cross-border insolvency appeals concerning the scope of the Bermudian court’s common law jurisdiction to afford assistance to a foreign liquidator, the Privy Council has laid down important guidance for all common law jurisdictions (i) on the application of the principle of ‘modified universalism’ in the wake of the Supreme Court’s restrictive approach in Rubin v Eurofinance SA [2012] 3 WLR 1019 SC (Singularis); and (ii) as to when a stranger to a winding up order (that is, neither the company, the OR, a liquidator, creditor or contributary) might exceptionally have locus to apply to set the order aside (Saad). In their note, Malcolm Davis-White QC and Sarah Bayliss analyse the differing views of the members of the Board as to the appropriate role of modified universalism in assistance cases. With the Board split 3:2 with the majority in favour of a more expansive approach to the principle (Lords Sumption, Collins and Clarke) and the minority (Lords Mance and Neuberger) wary of the risk of an unprincipled application of the doctrine leading courts to arrogate to themselves exorbitant powers at common law to circumvent the inconvenient application of local statutory provisions, the authors consider how the assistance doctrine might develop from here…

The note can be viewed here.