Calum Mulderrig Successfully Obtains Third-Party Conviction and Compensation Costs

Calum Mulderrig, on behalf of Ian Gatt QC, Harry Spendlove, Beata Moskova and Ollie Ingham of Stewarts, successfully obtained a third party debt order over the pension assets held in trust, as well as an indemnification order against the trustee of retirement. Calum acted for the plaintiff.

On July 11, 2022, the High Court (HHJ Paul Matthews (sitting as High Court Judge)) delivered a judgment which considered the rights of creditors to obtain debt orders from third parties over pension assets held in trust for debtors.

The High Court accepted the Applicant’s submissions and followed the jurisdiction created in Blight vs. Brewster [2012] 1 WLR 2841, and the more recent decision in Bacci versus Green [2022] EWHC 486 (Ch), granting an injunction compelling the respondent (a pension recipient) to withdraw his pension so that a third party debt order could bite into those assets and satisfy an underlying judgment debt owed by the respondent to plaintiff. The judgment sheds additional light on a relatively new area of ​​debt collection law.

Another unusual feature of the case was the separate High Court judgment of July 20, 2022 awarding compensation costs to the third party trustee of the pension assets. HHJ Paul Matthews accepted the plaintiff’s submissions that this was an appropriate case for compensation costs and concluded that it was “entirely convinced that the conduct of the third party in these claims was “out of the ordinary”…including due to the third party coordinating with the defendant to oppose the claim.

The judgment of injunction and injunction of debts is here.

The correlative judgment on compensation costs can be found here.

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