Charles Fussell & Co LLP has been instructed to act for a private individual who is the subject of a Chancery Division claim brought by an alleged creditor of a now-Chapter 7 bankrupt company. The claim is based on a personal guarantee given by the individual. Aside from disputes as to the merits of the claimant’s claim, the case is of interest because the personal guarantee arises out of a potential misrepresentation by a former fellow director, who may have acted as the creditor’s agent in misleading the individual on the extent of his liability.
The case raises a number of legal questions, including in what situations the director of a company may be held to be acting as another’s agent, and whether the misrepresentations of such an agent can taint the subsequent claims of a principal. It will therefore be of interest to individuals and companies dealing with creditors, and practitioners dealing with agency issues in the corporate and insolvency contexts.
Charles Fussell & Co LLP has instructed Dr Christopher Harris of 3 Verulam Buildings as Counsel.