Joseph Ackerman vs Michael Thomas Leeds & Others

This case involved a complex dispute over the demerger of the Ackerman family business and subsequent bankruptcy proceedings, leading to multiple legal claims and counterclaims.

TLDR:

• Joseph Ackerman challenged the demerger of the family business.
• He was made bankrupt, and his claims were assigned to other family members.
• The court dismissed Joseph's application to set aside the settlement of his claims.

Joseph Ackerman and his brother Jack established the Ackerman Group in the early 1960s. Following Jack's death, his share of the business was inherited by his wife Naomi and his son Barry. In 2006, due to deteriorating relationships, the family decided to demerge the business.

In 2011, Joseph challenged the demerger, alleging bias and unfairness in the process. His claim was dismissed by Vos J, and subsequent attempts to set aside the order were also struck out. Joseph was made bankrupt in 2016, and his claims were assigned to Naomi, Barry, and their company Bana One Limited by the trustees in bankruptcy.

Joseph issued an application under s.303 of the Insolvency Act 1986 to set aside the settlement of his claims. The court had to determine whether Joseph had standing to make the application, whether the trustees' release affected his ability to pursue the application, and whether the application disclosed a reasonable cause of action.

The court found that Joseph did not have standing to make the application as he could not show that there was likely to be a surplus in his bankruptcy. Even if he had standing, the court concluded that the application had no real prospect of success as the trustees had acted reasonably in entering into the settlement.

Legal representatives: David Eaton Turner and James Davies (instructed by Ackroyd Legal (London) LLP) for the Applicant, Katie Longstaff (instructed by Pinsent Masons LLP) for the First and Second Respondents, Marcia Shekerdemian KC and Andrew Mold KC (instructed by Bryan Cave Leighton Paisner Llp LLP) for the Third to Fifth Respondents.

Judicial Panel: Deputy ICC Judge Passfield KC

Case Citation Reference: [2024] EWHC 1215 (Ch)