Pattison v Messrs Clarksons & Steele

Permission for a second-tier appeal under the Civil Procedure Rules, rule 52.13, requires an important point of principle or practice, or another compelling reason. A complaint about advice given after a bankruptcy order does not meet that threshold where the petition debt is due, outstanding and no longer open to challenge. The legal effect of bankruptcy on a bankrupt’s cause of action is separate from the validity of the bankruptcy order. Dislike of bankruptcy’s consequences is not a ground for avoiding the order.

Former solicitors presented a bankruptcy petition based on unpaid costs orders. District Judge Fairwood made a bankruptcy order on 13 March 2001. After the order, he first indicated that Mr Pattison could pursue a claim against the petitioners, then reconsidered and advised that the cause of action vested in his trustee in bankruptcy. His Honour Judge McGonigal dismissed Mr Pattison’s appeal on 18 June 2001 and refused permission to appeal. Mr Pattison sought permission for a second-tier appeal, arguing that he had relied on the initial indication. The central issue was whether the proposed appeal raised an important point of principle or practice, or disclosed another compelling reason for the Court of Appeal to hear it.

Permission to appeal

1. The application for permission to bring a second-tier appeal was refused. Under Civil Procedure Rules, rule 52.13, permission could be granted only if the proposed appeal raised an important point of principle or practice, or if there was some other compelling reason for the Court of Appeal to hear it.
2. The bankruptcy petition was founded on costs orders made in successive proceedings. Those orders, and the substantive orders to which they related, were no longer subject to appeal. Mr Pattison’s liability was undisputed and remained outstanding. There was therefore no apparent basis on which the petition could have been successfully resisted.
3. The advice concerning Mr Pattison’s ability to pursue his latest claim was given after the bankruptcy order. It was not part of the order under appeal and did not affect the debt on which the petition was founded. The later advice that the benefit of the cause of action vested in the trustee in bankruptcy was correct.
4. The Court of Appeal respectfully agreed with Judge McGonigal that the advice was irrelevant to the validity of the bankruptcy order. The proposed appeal was misconceived and raised neither an important point of principle or practice nor another compelling reason. The application was refused, and the transcript was ordered to be provided at public expense.

• Court of Appeal (Civil Division): Permission for a second-tier appeal was refused under rule 52.13 of the Civil Procedure Rules: [2001] EWCA Civ 1959.
• High Court, Chancery Division, Leeds District Registry: His Honour Judge McGonigal dismissed the appeal from the bankruptcy order on 18 June 2001 and refused permission to appeal.
• District Judge Fairwood: A bankruptcy order was made against Mr Pattison on 13 March 2001.