The High Court has found that myriad claims against the former directors of BHS fall to be struck out in the context of the high-value, complex litigation being brought by the joint liquidators of the BHS companies against the former directors of those companies.
Mr Justice Edwin Johnson, who heard the matter on appeal, has today handed down a judgment which will be of valuable assistance to practitioners in this area. The judgment reaffirms that causation and quantum are essential elements of a cause of action under section 214 of the Insolvency Act 1986, as they are for breach of duty claims under section 212, and that it is essential for liquidators to plead these elements – indeed it is “basic good practice, in terms of pleading” for them to do so. This pleading requirement will not be satisfied by an attempt to say that is it is obvious what the liquidators’ case is, or to argue that the case can be identified from some other source.
Further, given the scale of the claims and complexity of the BHS litigation, Edwin Johnson J held, it is not acceptable for a case on the date of knowledge for the purposes of a claim under section 214 to be left “at large” on the pleadings. A specific date or dates must be identified – and it is “essential that the relevant pleading identifies what the case is on causation and quantum for each of the alternative dates relied upon as the Knowledge Date”.
Daniel Lightman QC and Charlotte Beynon, instructed by Jan Mugerwa and Will Castledine of Olephant Solicitors, represented the successful Appellant in Chandler v Wright [2022] EWHC 2205 (Ch).
To read the judgment, please click here.
As part of a broad Chancery-Commercial practice, Daniel Lightman KC engages with challenging and novel issues of law and civil procedure, in particular concerning shareholder disputes (having appeared in a number of landmark unfair prejudice petitions and derivative claims), company law (including in matrimonial proceedings), insolvency, civil fraud, breach of fiduciary duty and professional negligence.
Shortlisted for Company/Insolvency Silk of the Year in the Chambers & Partners UK Bar Awards in both 2026 and 2024 and shortlisted for Chancery Silk of the Year in the Legal 500 Bar Awards 2026, Daniel is recommended in Band 1 for Silks for Company by both Chambers UK, 2027 and the Legal 500, 2027 – and in Band 1 for Chancery Commercial by Chambers. Chambers UK, 2027 describes him as “A go-to silk for high value, complex disputes who leads the pack on shareholder disputes. He has great judgement and always furnishes reliable advice” and praises him for “constantly identifying innovative solutions to complex problems” and building “outstanding relationships with the wider legal team.”
Daniel has an extensive international practice, including current or recent shareholder litigation in the courts of Abu Dhabi, Bermuda, Cayman, Guernsey and Qatar, and a multi-shareholder arbitration in Hong Kong.
Call: 1995
Silk: 2016
Charlotte Beynon has a commercial chancery practice encompassing contentious trusts, civil fraud, insolvency and commercial litigation.
Her clients say, “Charlotte is brilliant. A superstar in the making”, and they also commend her as “pragmatic, responsive and commercial.”
She frequently handles complex, high-value cases, onshore and offshore, often with international elements. She is particularly experienced in acting in high-value offshore trusts disputes and complex fraud claims – often raising issues of private international law.
Charlotte regularly appears in the High Court and County Court both led and as sole counsel. She also appears as specialist chancery counsel in matrimonial proceedings in the Family Division. Her legal writing has been published in Trusts & Trustees.
Call: 2015