• 0800 015 0340
  • Contact Us
    • All Offices
    • Leeds City Centre
    • Bradford City Centre
    • Huddersfield
    • Wakefield
    • Halifax
    • Morley
    • Horbury
    • Guiseley
  • IIC logo
Menu
  • About Us
  • Vision & Values
    • Visions & Values
    • Health and Wellness
    • Charity & Community
    • Prizes & Awards
    • Sponsorship
  • Your Team
  • Media
    • The Hub
    • Downloads
  • Free Training
  • Careers
  • Testimonials
Chadwick Lawrence
Trustpilot
  • Business Services
    • Employment Law
      • Employment Law
      • BoxHR
    • Complete Property Solutions
      • Complete Property Solutions
      • Commercial Property Transactions
      • Development & New Build Sales
      • Property Dispute Resolution
      • Sales & Purchases of Property
      • Commercial Land Development
      • Boundary Disputes, Land Ownership, Rights, Breach of Contract, Misrepresentation & Damage to Property
      • Leases of Commercial Premises for Landlords or Tenants
      • Land Acquisition for Residential Development & New Build Sales
      • Breaches of Leases, Rent & Service Charge Issues
      • Mortgage Finance & Security
      • Option Agreements & Conditional Contracts
      • Claims Against Property Professionals
      • Leasehold Management
      • Planning Agreements
      • Judicial Review
      • blank
      • blank
      • Lease Renewals, Termination & Dilapidations
    • Corporate & Contracts
      • Corporate & Contracts
      • Banking & Finance
      • Commercial Contracts
      • Corporate Advisory
      • Mergers & Acquisitions
      • LINK
    • Corporate Recovery & Insolvency
      • Corporate Recovery & Insolvency
      • Administration
      • Fraudulent Trading
      • Wrongful Trading
      • Preferences
      • Transactions at an Undervalue
      • Director Disqualification
      • Company Restoration
      • Winding-Up Petitions
      • Statutory Demands
      • Individual Voluntary Arrangements
      • Bankruptcy
      • Validation Orders
      • Administrative Receivership
      • Company Voluntary Arrangements
      • Liquidations
      • FAQs
    • Intellectual Property
      • Intellectual Property
      • Contracts and Licenses
      • Trademarks
      • Design Rights
      • Enforcement
      • Restrictive Covenants
      • FAQs
    • Litigation in Business
      • Litigation in Business
      • Contractual Disputes
      • Construction Disputes
      • Professional Negligence
      • Restrictive Covenant Solicitors
      • Banking & Finance
      • Debt Collection & Recovery
      • Directors and Partnership Internal Disputes
      • FAQs
      • Complete Property Solutions (Property Dispute Resolution)
    • Media Law and Reputation
      • Media Law and Reputation
      • Pre-Publication and Crisis Management
      • After Publication
      • Online Reputation
      • Defamation
      • Harassment
      • Privacy
    • Regulatory Services
      • Regulatory Services
      • Coroners Inquests
      • Licensing
      • Sports Regulation
      • Health and Safety Investigations
      • Trading Standards
      • Box GDPR
      • BoxLegal
      • Immigration & Workers
      • Transport Law
    • Sports Law
      • Sports Law
      • Club Services
      • Player / Coach Services
      • Regulatory Services
      • Private Client Services
  • Personal Services
    • Road Traffic & Motoring Law
      • Road Traffic & Motoring Law
      • Drink Driving
      • Speeding & Disqualification
      • Driving Without Due Care & Attention
      • Use of a Mobile Phone
      • Driving Without Insurance
      • Drug Driving
      • Dangerous Driving
      • Failure to Provide Information
      • Road Traffic and Motoring Offences
    • Media Law and Reputation
      • Media Law and Reputation
      • Pre-Publication and Crisis Management
      • After Publication
      • Online Reputation
      • Defamation
      • Harassment
      • Privacy
    • Dispute Resolution
      • Dispute Resolution
      • Property Dispute Resolution
      • Contentious Probate
      • Court Proceedings
      • Data Protection GDPR Breaches
      • Debt Matters
      • Private Contract Disputes
      • Professional Negligence
      • FAQs
    • Employment Law
      • Employment Law
      • Disciplinary
      • Grievance Advice
      • Employment Tribunal
      • Settlement Agreements
      • Restrictive Covenants
      • Exit Packages
      • FAQS
    • Family Solicitors
      • Family Solicitors
      • Divorce
      • Civil Partnership
      • Financial Settlements after Divorce or Dissolution
      • Pre-nuptial and Post-nuptial Agreements
      • Adoption
      • Grandparents Rights
      • Funding Your Case
      • Mediation Solicitors
      • Financial Provision for Children
      • Separation Agreement Solicitors
      • Cohabitation Agreements
      • Collaborative Law Solicitors
      • FAQs
    • Home & Property Services
      • Home & Property Services
      • Remortgaging
      • Buying and Selling
      • Property FAQs
    • Medical Negligence
      • Medical Negligence
      • Accident & Emergency
      • Amputations
      • Birth Injuries
      • Brain Injuries
      • Cancer Cases
      • Cardiology
      • Ear, Nose & Throat
      • Eye Conditions & Surgery
      • Gastroenterology
      • General Practitioner (GP)
      • Genetic Conditions
      • Gynaecology
      • Neurology / Nerve Damage
      • Orthopaedics & Rheumatology
      • Paediatrics
      • Respiratory Disorders
      • Spinal Cord Injuries
      • Surgery
      • Urology & Renal
      • Vascular Conditions & Vascular Surgery
    • Personal Injury Solicitors
      • Personal Injury Solicitors
      • Animal Related Injury Claims
      • Armed Forces Injury Claims
      • Slip, Trip or Fall Accident Claim
      • Accident At Work Claims
      • Road Traffic Accident Solicitors
      • FAQs
    • Wills & Probate Solicitors
      • Wills & Probate Solicitors
      • Disputed Wills
      • FAQs
      • International Legal Matters
      • Lasting Powers of Attorney (LPA)
      • Succession Planning
      • Trusts
      • UK Tax Planning
    • Court of Protection
      • Court of Protection
      • Lay Deputyship Advice
      • Personal Injury Trusts
      • Professional Deputyships
      • Statutory Wills
  • Business Services
    • Business Services
      • Employment Law
        • Employment Law
        • BoxHR
      • Complete Property Solutions
        • Complete Property Solutions
        • Commercial Property Transactions
        • Development & New Build Sales
        • Property Dispute Resolution
        • Sales & Purchases of Property
        • Commercial Land Development
        • Boundary Disputes, Land Ownership, Rights, Breach of Contract, Misrepresentation & Damage to Property
        • Leases of Commercial Premises for Landlords or Tenants
        • Land Acquisition for Residential Development & New Build Sales
        • Breaches of Leases, Rent & Service Charge Issues
        • Mortgage Finance & Security
        • Option Agreements & Conditional Contracts
        • Claims Against Property Professionals
        • Leasehold Management
        • Planning Agreements
        • Judicial Review
        • blank
        • blank
        • Lease Renewals, Termination & Dilapidations
      • Corporate & Contracts
        • Corporate & Contracts
        • Banking & Finance
        • Commercial Contracts
        • Corporate Advisory
        • Mergers & Acquisitions
        • LINK
      • Corporate Recovery & Insolvency
        • Corporate Recovery & Insolvency
        • Administration
        • Fraudulent Trading
        • Wrongful Trading
        • Preferences
        • Transactions at an Undervalue
        • Director Disqualification
        • Company Restoration
        • Winding-Up Petitions
        • Statutory Demands
        • Individual Voluntary Arrangements
        • Bankruptcy
        • Validation Orders
        • Administrative Receivership
        • Company Voluntary Arrangements
        • Liquidations
        • FAQs
      • Intellectual Property
        • Intellectual Property
        • Contracts and Licenses
        • Trademarks
        • Design Rights
        • Enforcement
        • Restrictive Covenants
        • FAQs
      • Litigation in Business
        • Litigation in Business
        • Contractual Disputes
        • Construction Disputes
        • Professional Negligence
        • Restrictive Covenant Solicitors
        • Banking & Finance
        • Debt Collection & Recovery
        • Directors and Partnership Internal Disputes
        • FAQs
        • Complete Property Solutions (Property Dispute Resolution)
      • Media Law and Reputation
        • Media Law and Reputation
        • Pre-Publication and Crisis Management
        • After Publication
        • Online Reputation
        • Defamation
        • Harassment
        • Privacy
      • Regulatory Services
        • Regulatory Services
        • Coroners Inquests
        • Licensing
        • Sports Regulation
        • Health and Safety Investigations
        • Trading Standards
        • Box GDPR
        • BoxLegal
        • Immigration & Workers
        • Transport Law
      • Sports Law
        • Sports Law
        • Club Services
        • Player / Coach Services
        • Regulatory Services
        • Private Client Services
  • Personal Services
    • Personal Services
      • Road Traffic & Motoring Law
        • Road Traffic & Motoring Law
        • Drink Driving
        • Speeding & Disqualification
        • Driving Without Due Care & Attention
        • Use of a Mobile Phone
        • Driving Without Insurance
        • Drug Driving
        • Dangerous Driving
        • Failure to Provide Information
        • Road Traffic and Motoring Offences
      • Media Law and Reputation
        • Media Law and Reputation
        • Pre-Publication and Crisis Management
        • After Publication
        • Online Reputation
        • Defamation
        • Harassment
        • Privacy
      • Dispute Resolution
        • Dispute Resolution
        • Property Dispute Resolution
        • Contentious Probate
        • Court Proceedings
        • Data Protection GDPR Breaches
        • Debt Matters
        • Private Contract Disputes
        • Professional Negligence
        • FAQs
      • Employment Law
        • Employment Law
        • Disciplinary
        • Grievance Advice
        • Employment Tribunal
        • Settlement Agreements
        • Restrictive Covenants
        • Exit Packages
        • FAQS
      • Family Solicitors
        • Family Solicitors
        • Divorce
        • Civil Partnership
        • Financial Settlements after Divorce or Dissolution
        • Pre-nuptial and Post-nuptial Agreements
        • Adoption
        • Grandparents Rights
        • Funding Your Case
        • Mediation Solicitors
        • Financial Provision for Children
        • Separation Agreement Solicitors
        • Cohabitation Agreements
        • Collaborative Law Solicitors
        • FAQs
      • Home & Property Services
        • Home & Property Services
        • Remortgaging
        • Buying and Selling
        • Property FAQs
      • Medical Negligence
        • Medical Negligence
        • Accident & Emergency
        • Amputations
        • Birth Injuries
        • Brain Injuries
        • Cancer Cases
        • Cardiology
        • Ear, Nose & Throat
        • Eye Conditions & Surgery
        • Gastroenterology
        • General Practitioner (GP)
        • Genetic Conditions
        • Gynaecology
        • Neurology / Nerve Damage
        • Orthopaedics & Rheumatology
        • Paediatrics
        • Respiratory Disorders
        • Spinal Cord Injuries
        • Surgery
        • Urology & Renal
        • Vascular Conditions & Vascular Surgery
      • Personal Injury Solicitors
        • Personal Injury Solicitors
        • Animal Related Injury Claims
        • Armed Forces Injury Claims
        • Slip, Trip or Fall Accident Claim
        • Accident At Work Claims
        • Road Traffic Accident Solicitors
        • FAQs
      • Wills & Probate Solicitors
        • Wills & Probate Solicitors
        • Disputed Wills
        • FAQs
        • International Legal Matters
        • Lasting Powers of Attorney (LPA)
        • Succession Planning
        • Trusts
        • UK Tax Planning
      • Court of Protection
        • Court of Protection
        • Lay Deputyship Advice
        • Personal Injury Trusts
        • Professional Deputyships
        • Statutory Wills

You are here:Home > Media > News > Chadwick Lawrence secures justice for home buyers

  • Quick Jump
    • About Us
    • BoxHR
    • Business Services
    • Careers
    • Client Care & Complaints
    • Contact Us
    • Cookie Policy
    • Development and Plot Sales
    • Divorce Solicitors
    • Downloads
    • Financial Conduct Authority Investigation
    • Health and Wellness
    • Legal About Us
    • Make a payment
    • Media
    • Media
    • Meet Your Managing Partner
    • National Minimum Wage Investigations
    • Perks For Our People
    • Personal Services
    • Pricing Transparency
    • Privacy Notice
    • Prize Draw Terms & Conditions
    • Property Dispute Resolution
    • Seminar Sign In
    • Separation Specialist Solicitors
    • Sitemap
    • START
    • Team
    • Terms & Conditions
    • Testimonials
    • The Chadwick Lawrence Way
    • The Hub
    • Transport Law
    • We are Yorkshire's Legal People
    • Yorkshire Lawyer Network
Chadwick Lawrence secures justice for home buyers

29
Jul 2012

Chadwick Lawrence secures justice for home buyers

The insolvency team at Chadwick Lawrence have recently helped some of their clients to victory in a court case which may have consequences for those attempting to reclaim money from insolvent companies in the future.

Chadwick Lawrence represented a retired couple who had reserved, with a deposit, the right to buy a seaside flat at a set price from a property development company in Whitby. They had paid the deposit to the builders.

When the market rose their deposit was returned to them by the builders.  They later found out the flat they had reserved had been sold to others at a higher price.  They successfully obtained judgment in the Leeds County Court against the development company for the difference.  However shortly before trial the director and sole shareholder and effective owner of the development company took all the assets out of it.  The director said he did this on advice and for legitimate business reasons as part of a re-organisation.

The court gave judgment against the director in an important decision, which may help creditors of private companies.  The judge examined the conduct of the director and found him to have been in breach of his duty as a director.

The judge said the director owed a duty to consider the position of the Claimants as contingent creditors and to take steps to enquire as to the effects on the company of moving all of the assets out of it in those circumstances – because the company would be insolvent if, as happened, the Claimants won their case.  The director was found to be in breach of his duty to the company by removing all the assets from it at the time he did.  Removing all the assets went beyond what was necessary or what he had been advised to do to achieve a re-organisation, and the director should have given thought to the effect on the company of the litigation that was nearing trial and whether the company was left with enough funds to pay any judgment against it.

The director was ordered to pay back to the company enough money to cover the Claimant’s unsatisfied judgment and their costs and the costs of the company’s liquidator.

It represents an interesting judgment being a victory for the retired couple against their developer, and an interesting case on the duties of directors to creditors of companies, as previously claims against limited companies were open to being stymied by assets being moved out of the company so that, even if a company lost a case, it couldn’t pay any amount awarded to claimant.

If you are having difficulty reclaiming money from a company which has become insolvent, contact our Corporate Recovery & Insolvency Solicitors today. Please call 01924 379078 or e-mail peterharling@chadlaw.co.uk or oliviarobinson@chadlaw.co.uk and our specialist Insolvency Law Solicitors will provide you with expert legal advice and assistance.

< Back to Media Hub

  • Like this ? Share with friends
Chadwick Lawrence’s Annual Bake-Off Returns for Dementia Action Week

22
May 2025

Chadwick Lawrence’s Annual Bake-Off Returns for Dementia Action Week

It’s that time of year again at Chadwick Lawrence – spatulas at the ready and aprons on – as we kick off our much-loved Annual Bake Off in celebration of Dementia Action Week!  Across our offices, colleagues are rising to the challenge, competing for the coveted title of Best Baker 2025. From showstopping sponge cakes…

Read More

Is Dementia Preventable?

21
May 2025

Is Dementia Preventable?

Exploring risk factors for Dementia: what you can do now to protect your brain It’s true that getting older naturally increases our risk for cognitive decline, but the good news is that we’re learning more about factors we can influence to potentially reduce that risk. So, what can we do to help protect our brains…

Read More

Get in touch


  • 0800 015 0340
  • info@chadlaw.co.uk

Social Media


featured image
Chadwick Lawrence
  • Pricing Transparency
  • Legal About Us
  • Client Care & Complaints
  • Privacy Notice
  • Cookie Policy
  • Terms & Conditions
  • Sitemap

© Copyright 2025. Website design by Fantastic Media.

*The following are trading names/styles of Chadwick Lawrence LLP, Chadwick Lawrence Solicitors, Chadwick Lawrence, Yorkshire’s Legal People, Chadlaw, Acclaim

‹›×
    Leave a Message

    This field is hidden when viewing the form
    Name(Required)