E.ON UK PLC & Anor v Safe Hosts Internet LLP & Ors

In a peaceful seizure of goods under a writ of control, the third-party claimant bears the legal burden of showing that it owned the goods or possessed them when seized. Proof of possession may then shift the burden to the enforcement officer and creditor to justify the seizure by showing that the judgment debtor had an interest in the goods. A reasonable belief that the debtor owned the goods does not itself establish a right to seize them or determine ownership, although it may bear on a financial remedy. The applicable standard remains the balance of probabilities.

Judgments were enforced against Safe Hosts Internet LLP. Equipment was seized at premises also used by 4ON 365 Limited, which claimed ownership under the controlled-goods procedure. The enforcement officer remained neutral. The court directed a trial under Civil Procedure Rules 85.10 and 85.11 to determine ownership of the listed goods. The issues were the burden and standard of proof and whether 4ON had established ownership or possession.

1. A writ of control authorises seizure only of goods in which the judgment debtor has an interest, consistently with paragraphs 3 and 4 of Schedule 12 to the Tribunal Courts and Enforcement Act 2007.
2. Where seizure is peaceful and without force, threats or resistance, the third-party claimant bears the legal burden of proving ownership or possession at the time of seizure. Proof of possession shifts the burden of justifying the seizure to those seeking to uphold it.
3. A reasonable belief that the debtor had an interest may affect damages or compensation, but does not determine ownership, possession or the right to seize.
4. Applying the balance of probabilities and assessing the evidence holistically, the court found that 4ON owned every item in its schedule.
5. Consequential orders, costs and appeal matters were adjourned.

First-instance determination of ownership issues arising from enforcement applications under Civil Procedure Rules Part 85. The judgment records no earlier appellate decision.