High Court success for Ben Lafferty in Settle v Sandstone Legal Limited and Others [2025] EWHC 742 (Ch)

April 14, 2025

Ben Lafferty was recently instructed by Ward Hadaway to appear on behalf of the proposed administrators of Sandstone Legal Limited (the “Firm”) and was successful in achieving the appointment of his clients, in the face of opposition from a body of purported creditors who asserted to be owed circa £2 – £6 million from the Firm.

The administration application was originally made by the Firm’s sole director, who sought to place it in administration and sell its business and assets to a new company by way of a pre-pack sale. The Firm’s sole director had proposed his own choice of administrators, but certain creditors of the Firm sought the appointment of alternative office holders.

Ben’s clients had already been appointed as interim managers of the Firm, at a previous hearing of the administration application, and upon the return hearing before ICC Judge Barber, two issues remained for consideration:

i) whether a purpose of administration was reasonably likely to be achieved; and

ii) who the court should appoint as the Firm’s administrator.

The court accepted Ben’s submissions, and the submissions of others, as to the purpose of administration being achieved and the judgment will prove useful for practitioners in understanding how a court will approach this question in complex cases where there are competing outcome statements.

The court also accepted Ben’s submissions that his clients were the more appropriate choice of administrators, given the serious conduct issues that were present in the case, and the fact that his clients had shown themselves to be incredibly effective in their role as interim managers. Again, this judgment will prove useful to practitioners in understanding how the court will approach a dispute as to the identity of an insolvency office holder.

The case has been reported in the insolvency insider (which can be found here https://insolvency-insider.co.uk/p/sandstone-legal-case-update).