The court was asked to consider whether a judgment debt in respect of sums due under a hire-purchase agreement was a good petitioning creditor’s debt. The judgment sum included the balance of all the remaining hire charges which became payable on the premature determination of the agreement. After the judgment the Campbell Discount case had invalidated the clause as a penalty.
Held: Cross J exercised his power to go behind the judgment to hold that the creditor had, on a proper application of the law, no more than a cause of action against the debtor for unliquidated damages.
Judges:
Cross J
Citations:
(1962) 106 Sol Jo 469
Jurisdiction:
England and Wales
Citing:
Applied – Campbell Discount Company Ltd v Bridge HL 1962
The parties disputed the validity of a clause in a car hire contract relating to the consequences of a breach.
Held: (Majority) The agreement had been terminated by breach rather than by the exercise of an option, so that the stipulated . .
Cited by:
Cited – McGuinness v Norwich and Peterborough Building Society CA 9-Nov-2011
The appellant had guaranteed his brother’s loan from the respondent, and the guarantee having been called in and unpaid, he had been made bankrupt. He now appealed saying that the guarantee debt, even though of a fixed amount could not form the . .
Lists of cited by and citing cases may be incomplete.
Insolvency
Updated: 06 May 2022; Ref: scu.450462