James Bailey KC

Civil fraud and asset recovery

James’s has developed a substantial civil fraud practice in silk, often arising from the cross-over between his commercial chancery, company and insolvency practices.

James has a vast array of experience with respect to urgent injunctive relief, ranging from worldwide freezing orders and quia timet injunctions through to more specialised passport orders, committal applications and applications of the Anton Pillar jurisdiction (extending to doorstep disclosure orders and imaging orders).

Recent experience:

• Re Valorem Holdings Ltd: James appeared for a shareholder in a particularly striking example of how far the court is prepared to go to protect businesses by way of interim injunctive relief where the circumstances warrant it. The case involved the ownership and control of a leading perfume brand, and James obtained (for what is believed to be the first time in England and Wales) an injunction removing a director from the board without notice (as well as a passport and imaging order) in circumstances where a breach of Russian trading sanctions was alleged: Re Valorem Holdings Ltd [2023] EWHC 2625 (Ch); [2024] B.C.C. 1.
• James has acted for the claimants in the long-running Lim v Ong litigation. The claim pertained to the recovery of substantial investments in a property investment fraud perpetrated by the first defendant through a network of companies. The case required a broad array of worldwide injunctive and quia timet relief, the terms of which were the subject of dispute (Lim v Ong [2021] EWHC 3414 (Ch); [2022] EWHC 225 (Ch). The claimants were successful at trial (Lim v Ong [2023] EWHC 321 (Ch) but at the enforcement stage it became apparent the first defendant was in substantial breach of freezing orders. A successful application was made to seize his passport, confining him to England and Wales, in advance of a contempt application by which he was committed to prison for 22 months [2024] EWHC 373 (Ch). See here for further details.
• Between 2020 and 2023, James represented a member of a family in a dispute as to the ownership of a substantial portfolio of property including a hotel, an airport and a collection of London residences. The passing of a critical witness raised intriguing strategic considerations in circumstances where various allegations of fraud were made with respect to estate planning and the division and distribution of assets.
• James is frequently instructed in urgent applications to court to preserve not only assets, but also control of corporate vehicles. He appeared in the long-running and controversial Thevarajahlitigation concerning an alleged fraud against the purchase of certain special purpose vehicles. The case took him to the Court of Appeal twice (Thevarajah v Riordan [2014] C.P.Rep.19; and [2015] C.P.Rep19), and thereafter to the Supreme Court (Thevarajah v Riordan [2015] UKSC 78; [2016] 1 W.L.R. 76), serving as a powerful and successful illustration of the importance of making accurate strategic and substantive decisions when advancing interim applications.

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Company law

James is regularly involved in acting for both directors and shareholders in company disputes and is ranked by Chambers UK Bar and Chambers Global.

He appeared in the seminal cases of Re Valorem Holdings [2023] EWHC 2625 (Ch); [2024] B.C.C. 1 by which he successfully removed a director from a board of a company on a without notice application, and Re Fort Gilkicker [2013] Ch. 551; [2013] W.L.R. 164; [2013] 3 All.E.R. 546; [2013] B.C.C. 365 in which he successfully contended (against the position of Lord Millett writing extra-judicially) for the continued existence of multiple derivative actions in English company law after the coming into force of the Companies Act 2006.

James’s company work includes advising directors on their duties generally, equitable winding up petitions, and is often involved in “split board” cases where he has assisted private equity and hedge funds. He was instructed in the British Universities and Colleges Sport matter over the construction of certain articles of association, a dispute which picketing students brought into the public eye.

James is also regularly involved in minority shareholder cases where his strong mathematical background makes him a favourite in cases involving complex forensic accounting.

Recent experience:

• A case involving the ownership and control of a leading perfume brand, James facilitated the protection of business by obtaining (for what is believed to be the first time in England and Wales) an injunction removing a director from the board without notice in circumstances where a breach of Russian trading sanctions was alleged: Re Valorem Holdings Ltd [2023] EWHC 2625 (Ch); [2024] B.C.C. 1.
• James has acted for the claimants in the long-running Lim v Ong litigation. The claim pertained to the recovery of substantial investments in a property investment fraud perpetrated by the first defendant through a network of companies. The case required a broad array of worldwide injunctive and quia timet relief, the terms of which were the subject of dispute (Lim v Ong [2021] EWHC 3414 (Ch); [2022] EWHC 225 (Ch). The claimants were successful at trial (Lim v Ong [2023] EWHC 321 (Ch), obtaining an order among other things compelling the first defendant to restructure the corporate group.

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Insolvency

He has a substantial insolvency practice which sits alongside his fraud work, and he is regularly instructed in high-profile matters. Historically he has acted for the Cayman Islands’ liquidators of Enron and appeared in the Comet administration. In 2018, he acted for Lawrence Stroll, who led a consortium to successfully acquire the Force India Formula 1 racing team, and again in 2020 upon the formation of the Aston Martin Formula 1 racing team. James was also instructed in the London Underground Public-Private Partnership. James is a contributor to Tolley’s Insolvency Law Service.

Recent experience:

• In the long-running Lim v Ong litigation (e.g. Lim v Ong [2023] EWHC 321 (Ch)), James appeared for the successful claimants on the first defendant’s bankruptcy. The case concerned the interaction of the insolvency regime with outstanding worldwide freezing injunctions, and in particular whether validation orders could be obtained to enable to release of funds from the estate to defend an application to commit the bankrupt to prison for contempt in associated, but technically separate, litigation.
• James appeared for the administrators in an important case which explored the principles applicable to paragraph 74 of Schedule B1 of the Insolvency Act 1986 and the assignment of causes of action, specifically an administrator’s refusal to do so: Re L&ND Development and Design Ltd [2020] EWHC 2803 (Ch); [2021] 2 B.C.L.C. 110; [2021] B.P.I.R. 48.
• James appeared for a Gibraltar incorporated company which sought to go into administration in England and Wales. The case raised a novel and very technical point as to whether such a company with its COMI in Gibraltar was a qualifying “company” for the purposes of Schedule B1 with respect to the Recast Insolvency Regulation: Re Nektan (Gibraltar) Ltd [2020] EWHC 65 (Ch); [2020] B.C.C.331.
• In 2018, James acted for a consortium led by Canadian billionaire Lawrence Stroll in the successful acquisition of the Force India Formula 1 motor racing team from Indian billionaire Vijay Mallya. The transaction was exceptionally complex and involved a structure never previously used in Formula 1.
• James acted for the successful petitioning creditor in the matter of Re Paul Baxendale-Walker (a bankrupt), a notorious piece of litigation arising out of negligent advice given by a former tax barrister and solicitor. Unusually the case concerned the appointment of an interim receiver, and thereafter the successful appointment of specifically named trustees in bankruptcy upon the making of a bankruptcy order (reported at [2018] B.P.I.R. 1243).
• James is instructed by office holders, creditors and debtors alike which gives rise to a broad range of work, including the challenging of the inappropriate use of the insolvency regime. Examples include the abuse of the IVA procedure in the Miss World.
• By way of sub-specialism, James’s insolvency practice includes matrimonial insolvency. He has been instructed in various high value divorces and acted for the wife against her purportedly bankrupt husband in the “quite extraordinary” Young v Young litigation.
• James was instructed as an English law expert in proceedings before the Supreme Court of South Korea on a cross-border insolvency aspect pertaining to the “rehabilitation” (administration) of the Samsun Logix Corporation.

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