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Coventry v Lawrence decision a common sense victory for creditors – R3

Commenting on the Supreme Court’s decision in the Coventry v Lawrence case, which rejected the contention that certain parts of the Legal Aid, Sentencing and Punishment of Offenders Act (2012) were incompatible with the European Convention on Human Rights, Frances Coulson, chair of the Fraud Group of R3, the insolvency trade body, says:

“The insolvency profession is very pleased with the Supreme Court’s decision. Common sense has won out. This decision is a victory for creditors and will help them get back money that they are owed after insolvencies."

“The case had huge implications for creditors in insolvencies in cases where money was being withheld from them by directors or third parties.”

“A decision the other way would have made legal action by insolvency practitioners to retrieve the money unaffordable in most cases. This would have risked as much as £160m per year not getting back to creditors from rogue directors and others.”

“The threat to creditors’ money is not over, however. The Ministry of Justice is set to review how insolvency litigation is funded by the end of the year. It’s important that that decision goes in creditors’ favour too.”

The Supreme Court permitted interventions from interested parties including R3.

R3 was assisted pro bono by Frances Coulson of Moon Beever who instructed Simon Davenport QC, Tom Poole, Dan Lewis and Clara Johnson (all of 3 Hare Court).

Notes to editors:

  • R3 is the trade body for Insolvency Professionals and represents the UK’s Insolvency Practitioners.

  • R3 comments on a wide variety of personal and corporate insolvency issues. Contact the press office, or see for further information.

  • R3 promotes best practice for professionals working with financially troubled individuals and businesses; all R3 members are regulated by recognised professional bodies
  • R3 stands for 'Rescue, Recovery, and Renewal' and is also known as the Association of Business Recovery Professionals.