Andrew Grantham KC successful on behalf of the Respondent in landmark ruling in the Court of Appeal in respect of Section 217 of the Insolvency Act 2016. In PSV 1982 Ltd v Langdon [2022] EWCA Civ 1319 the Court of Appeal determined that where judgment is obtained against a company using a prohibited name in proceedings to which the director was not a party, that judgment of itself is sufficient to establish the existence of the company’s liability in subsequent proceedings brought against the director under Section 217. It further determined that for the purposes of Section 217, the relevant liability is incurred while the company is using a prohibited name if the breach of contract giving rise to the liability or the judgment against the company is obtained while the company was using that prohibited name, even if the contract, which gave rise to the cause of action, was entered into prior to the company using the prohibited name.
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