Commercial property – Appointment of LPA receiver – Alleged sale at an undervalue – Special purchaser – Receiver’s duties

Devon Commercial Property Ltd v Robert Adrian Barnett (1) and Robert John Belcher (2) [2019] EWHC 700 (Ch) (HHJ Paul Matthews sitting as a judge of the High Court) (26 March 2019)

In this case it was alleged that Law of Property Act (LPA) receivers sold a commercial property, part of which was subject to a lease, at an undervalue to a special purchaser. The judge undertook a detailed review of the modern approach to such claims and the nature and extent of the duties owed by LPA receivers. The judgment runs to 275 paragraphs over 70 pages. The judgment includes helpful commentary in respect of the factors to be taken into account by LPA receivers when considering whether to sell to a “special purchaser”. It also emphasises that receivers are to be mindful of their general duties when considering sales, strategies and options.