In Bibby Factors Northwest Limited v HFD Limited [2015] EWCA Civ 1908, Edward Brown successfully resisted claims by invoice factors to prevent set off of cross-claims following insolvency. The Court of Appeal, upholding a decision of the Mercantile Court, held that debt claims brought by an invoice factor did not override principles of assignment and set off where there were closely connected cross claims. It also held that there is ordinarily no duty to speak up about the existence of cross-claims. The decision sets an important precedent in the areas of equitable set off and invoice financing more generally. Edward Brown was instructed by Jason Kirwin at Pinsent Masons LLP on behalf of companies in the Headlam Group. The decision is available here.
