Contract/Commercial

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Are You in This Party? The Scope of Section 213 of the Insolvency Act 1986

The UK Supreme Court recently handed down a judgment in Tradition Financial Services Ltd v Bilta (UK) Ltd & Others[1] in which it considered the scope of section 213 of the Insolvency Act 1986, specifically whether those beyond the small group of individuals with controlling or managerial functions of the liquidated company could be ‘party to’ the carrying on of a company’s business with intent to defraud creditors.

Class Dismissed? Representative Claims in Getty v. Stability AI

Earlier this year, the English High Court considered an application for strike out of a representative action in the ongoing dispute between Getty and Stability AI. The case is at the intersection of intellectual property (IP) issues in connection with generative artificial intelligence (AI) and class actions in the UK – issues close to Cooley’s heart – and we have been following developments with interest. The trial is listed to be heard in June, and so we’ll likely need to wait a while longer before we receive a decision on the IP implications arising from the use of third-party materials to train generative AI models. However, this recent decision provides insight into the extent to which the English court will be prepared to entertain class actions for IP claims, even in respect of complex tech litigation.

Two Judgments on Forum Challenges

Two notable English court judgments on jurisdiction have been handed down in the last few months – the first being the Court of Appeal’s decision in Limbu & Others v. Dyson Technology Ltd & Others[1], and the second the High Court’s decision in da Silva & Others v. Brazil Iron Ltd & Another[2]. Both cases involved group litigation against UK-domiciled companies in respect of the actions of third parties overseas.  In both cases, the defendants challenged the English courts’ jurisdiction on the grounds that the respective foreign courts were the more appropriate forum for the dispute. In both cases, the court rejected the challenge and retained jurisdiction. In Limbu, the Court of Appeal found, contrary to the conclusion of the High Court, that England was the more appropriate forum. In da Silva, however, the High Court found that Brazil was the more appropriate forum, but it nevertheless retained jurisdiction on the grounds that there was a real risk that the claimants would not obtain substantial justice in Brazil.

On the Record: Cooley Litigation Trends Webinar Series – Update on Key Issues in Crypto Disputes

Please join Cooley’s litigation team for the fourth session of our webinar series “Update on Key Issues in Crypto Disputes”

In this webinar we will delve into the evolving landscape of crypto disputes litigation in the UK and EU. As the adoption of cryptocurrencies and blockchain technology continues to rise, so do the legal challenges and disputes associated with them. This webinar is designed for legal professionals, financial institutions, and anyone interested in understanding the complexities of crypto-related litigation.

Court of Appeal Split on Scope of Exclusion Clause

In EE Ltd v. Virgin Mobile Telecoms Ltd[1], the Court of Appeal upheld the High Court’s decision that EE’s claim against Virgin was excluded under the terms of the parties’ telecommunications supply agreement.[2] While the decision ultimately confirmed the reasoning of the lower court, the decision is notable for being surprisingly close.

Law of Privilege: ‘Shareholder Rule’ Held to Be Unjustifiable

In its decision last year in Aabar Holdings SARL v. Glencore PLC & Others,[1] the High Court handed down a landmark ruling overturning the ‘shareholder rule’, which has been applied to the analysis of legal professional privilege as between a company and its shareholders since the 19th century. The court deemed this long-settled principle of the law of privilege to be ‘unjustifiable’ and held that it should not be applied.

Gaming Industry Does Not Owe General Duty of Care to Customers

In a significant judgment for the gaming industry, the High Court of England and Wales held in Gibson v. TSE Malta LP (t/a Betfair)[1] that gambling operators do not owe a general duty of care to their customers to prevent gambling-related harm, and that licence conditions imposed on operators do not create implied terms in the contract between the consumer and the operator.