(e) Child support agency payments
461.The complaint that is sought to be raised is that Child Support Agency payments were paid by LWC in respect of attachment of earnings orders requiring LWC as employer to pay sums from the employee’s remuneration in respect of a court order. The payments in question total £44,422 in respect of the years ended 31 October 2016 to 31 October 2019 and then the part year ended 7 October 2020.462.This is a new allegation for which permission to amend is required. At the start of the trial the Child Support Agency payments were mentioned in the Points of Reply in answer to an allegation about the Company’s insolvency. The position in this respect is the same as the position applying to the case about Lorraine’s salary. A case on this issue was only clearly raised when what was to become Schedule 3 appeared in an early iteration. I do not allow permission to amend. Again, it is too late and would be unfair to the Relevant Respondents.463.In particular, John’s position is that the payments were in fact deducted from his current salary rather than being an additional benefit to him on top of his salary. John’s position reflects what would be the usual position. Mr Lacey simply says that he has seen no evidence that they were deducted from the gross pay paid to John. I am not satisfied that the payments were not so deducted.464.It is also submitted on behalf of John that, even if these payments were, in effect, a top up on his salary (they are approximately £10,000 a year), then such a top up would not bring his salary within the “excessive salary” range. This and the last point demonstrates why it is unfair to allow this amendment now to be made. 465.Accordingly, I am not satisfied that there is relevant unfair prejudice in this respect.(f)
- Approved Judgment
- Introduction
- The Disputed Strip
- Representation before me
- The direction for a split trial and the trial before me
- The Hughes’ family and an overview of some of the Hughes’ businesses
- Portbond and LWC: Directors, shareholders and entry into administration
- The alleged acts of, or conduct of the Companies’ affairs, said to amount to unfair prejudice: summary
- Unfair prejudice
- [630]
- [631]
- [11]
- [12]
- Gamlestaden Fastigheter AB v Balti Partners Ltd
- Statements of case and amendment
- Approach to the Evidence
- Gestmin SGPS SA v Credit Suisse (UK) Ltd
- Lachaux v Lachaux
- Carmarthenshire County Council v Y
- Kimathi v Foreign and Commonwealth Office
- Gestmin:
- iii) Carmarthenshire County Council:
- Armagas Ltd v Mundogas SA
- Armagas v Mundogas
- The Ocean Frost,
- Charlie Pickering
- Mr Gregory
- David Clarkson
- Charles Hughes
- James
- Mr Greg Lacey: Expert
- Conduct in relation to other Hughes’ family companies
- 7,500
- Allegations in the Petition regarding alleged “cash sales” (stock sold for unaccounted cash); false allegations concerning, and unfair investigation of, payments to Lisa; removal of Lisa and Charlie from the Companies; legal proceedings against Lisa known to be on a false basis
- Cash sales
- Dismissal/Removal of Lisa
- (3) Investigation
- Causing the company to issue proceedings against Lisa
- Dismissal of Charlie from employment
- Directors’ loan accounts and the alleged cash sales of stock
- Lisa Pickering
- Repayment
- Proceedings
- Conclusion
- Charlie Pickering’s dismissal
- Cash Sales: conclusions
- Conclusions: investigations and removal of Lisa, the Recovery Proceedings
- Conclusion: dismissal of Charlie Pickering
- Benefits alleged to be taken from the Company by the Relevant Respondents: Funding of “extravagant personal lifestyles”
- (a) Salaries: John’s salary including Lorraine’s salary; James’ salary; Charles’ salary
- (b) Company credit card expenditure of John and Charles
- (c) Car expenditure
- Horse related expenditure
- Gallops:
- (e) Child support agency payments
- Payments to James for investment in his property business
- The evidence
- Discussion and conclusions
- General conclusion: allegation of financial support to fund extravagant personal lifestyles.
- Allegations relating to the Pre-Pack sale: summary
- The facts: the path to administration
