The Supreme Court has recently announced that it has granted permission to appeal the controversial decision in Bailey & Anr. v Angove’s PTY Limited [2014] EWCA Civ 215. In the Court of Appeal, it was held that the liquidators of an insolvent distributor were entitled, as agent, to continue collecting debts owed to the distributor’s principal (Angove) even though Angove had exercised its right under the distribution agreement to terminate the agency because of the agent’s insolvency. It was also held that the monies then collected would not be held on constructive trust for the principal, and so would fall to be used to pay the insolvent agent’s creditors generally.
Stephen Moriarty QC of Fountain Court Chambers and Professor Francis Reynolds QC Hon (7 KBW and consultant editor of Bowstead & Reynolds on Agency) have been brought in to join Nicholas Craig (3VB) in taking Angove’s appeal to the Supreme Court. The appeal is expected to come on sometime in the first half of 2015.
