Insights into Henderson & Jones
Henderson & Jones - 18 September 2018
Henderson & Jones (H&J) is a specialist company that buys litigation from insolvent companies and bankruptcy estates, paying cash upfront and/or a share of the proceeds.
As the claimant, H&J takes the risk and cost of the litigation. With access to funds and with a strong combination of in-house legal and insolvency expertise, H&J can robustly pursue claims, while leaving the insolvency practitioner (IP) free to close the insolvency.
We work with a range of IPs, creditors, and external solicitors and counsel, to maximise recoveries from legal claims without the insolvency practitioner incurring the risk and cost involved in litigation.
Here are some selected case studies from our files that illustrate the value that Henderson & Jones brings to every assignment:
Insurance and Contract Breach Claim > Underway
• H&J was approached by a solvent company that was struggling due to non-payment of claims. H&J reviewed the claims and deemed them to be strong.
• The company’s bankers were not prepared to support further funding, pending a sale of the company, so H&J agreed to an assignment of the claims and provided bridging capital to the company to ease cash flow through to the sale.
• This highlights how H&J is able to look at things from a different perspective and move quickly to commit.
Adjudication > Enforcement; Seven Figures
• Presented with a five-figure claim for an amount owed under a construction contract of a company that was insolvent. H&J paid for expert witness work to be undertaken, in addition to paying the hourly costs of historical team members of the insolvent company to complete a new final account. A very final account was submitted showing a strong seven figure liability.
• Our solicitors then ran an adjudication in the name of the insolvent company and won a seven-figure claim.
• This is now being enforced with H&J providing a guarantee to defeat the defendant’s impecuniosity arguments.
Fraud Claim > Settlement; Substantial Seven Figures
• H&J was presented with an illegal dividend claim, which required it to issue within weeks of receiving the files as time had moved on. H&J reviewed the files, but decided that the claim was probably not strong enough to have certainty; however the review highlighted other issues that had a much better chance of success.
• H&J took an assignment and issued proceedings (to protect against the time limitations) and proceeded to review evidence to strengthen the claim. During this process evidence of a fraud cover-up became clear.
• Obtained after-the-event (ATE) insurance and positive Counsel opinion and instructed lawyers to take the case forward. Settled within the year on a shared basis with the IPs.
• This highlights the way in which H&J looks at all aspects of an assignment, not just the perceived facts, and adds true value to the process.
Preference Claim > Settlement: Five Figures
• H&J was presenting at an IP firm to explain how assignments work. During the presentation a senior manager suggested a preference case.
• H&J purchased it a week later and settled within a month for twice purchase, a quantum that was more than acceptable to the insolvency practitioner.
• Because H&J could take the case in-house, not just financing, it was possible to consider all aspects and move quickly.
• This involved a contempt claim against two of H&J’s judgment debtors for several counts of contempt of Court in breaching a freezing order and lying to the Court.
• It followed months of enforcement on various properties and tracing money from the UK to Greece.
Negligence Claim > Settlement Substantial Six Figures
• A negligence claim was reaching limitations deadline and H&J was given a few days to issue.
• Having agreed to proceed, H&J entered into a standstill agreement and agreed a mediation date.
• H&J rejected a part offer and attended mediation and settled as above under the real threat of an escalating damages claim.
Enforcement Claim > Settlement Substantial Five Figures
• A claim for void payments against a dissolved company.
• The Land Registry searches revealed property worth five figures held.
• H&J appointed the IP following a restore and wind up to realise the asset.