Jersey Unreported Judgments

Debt - application for an acte Vicomte chargé d'écrire

[2020]JRC055

Royal Court

(Samedi)

6 April 2020

Before     :

T. J. Le Cocq, Esq., sitting alone

 

IN THE MATTER OF THE REPRESENTATION OF ALFALFA INVESTMENT LIMITED

Advocate G. D.  Emmanuel for Alfalfa Investment Limited.

judgment

the bailiff:

1.        On 9^th January 2020 I sat to consider whether Alfalfa Investment Limited (the Representor) could apply for an acte Vicomte chargé d'écrire to be served on Mr Graham Charles Waters and Mrs Paula Waters ("Mr & Mrs Waters").  I determined that such an acte could be served and I indicated that I would give very brief reasons which I now do. 

2.        The factual circumstances can be simply stated.  On 7^th February, 2014, the Representor entered into a bond with Mr and Mrs Waters in relation to a loan in the sum of £660,450 ("the Debt").

3.        On 14^th February, 2014, Mr and Mrs Waters executed a billet acknowledging that indebtedness and the billet was registered in the Public Registry of the Royal Court on that day ("the Act of Court").

4.        The Debt was due to be paid on 31^st January, 2017, but notwithstanding demands issued by the Representor to Mr and Mrs Waters to do so, the debt remains outstanding.

5.        On 13^th December 2019 the Representor brought a representation before the Court seeking an acte Vicomte chargé d'écrire.  Prior to the 1^st August 2014 it would not have been possible to apply for an acte Vicomte chargé d'écrire in the manner currently before me.  Under Article 2 of the Loi (1832) sur les Décrets ("the 1832 Law") an acte Vicomte chargé d'écrire could only be obtained by a creditor:-

(i)        Where a debtor had not paid a judgment debt within one month of the date of the relevant judgment; or

(ii)       15 days after a debtor had been reduced to short rations in prison.

6.        The second requirement had, of course, fallen into disuse and, in effect, an acte Vicomte chargé d'écrire was only ever sought and obtained at the expiration of one month following a judgment debt.

7.        On 1^st August 2014 the Statute Law Revision (Miscellaneous Provisions) (Jersey) Law 2014 removed reference to imprisonment for civil debt being a prerequisite for an acte Vicomte chargé d'écrire and allowed an acte Vicomte chargé d'écrire to be ordered pursuant to an act of court acknowledging the debt.  The relevant section is as follows:-

"Le créancier qui aura obtenu contre un débiteur un acte ou jugement (soit de la Cour Royale soit de la Cour pour le Recouvrement de Menues Dettes) pour le paiement ou la reconnaissance d'une obligation actuelle ou contingente, compte, ou autre dette, ou pour le règlement d'un compte, ou statuant le montant des dommages-intérêts, pourra, en s'adressant un mois après à la Cour Royale, faite autoriser le Vicomte à signifier audit débiteur, qu'il ait à satisfaire son créancier dans deux mois de ladite signification, sous peine que tous ses biens-meubles et héritages soient adjugés renoncés."

8.          Rule 11.1 of the Royal Court Rules 2004 (as amended in 2017) provides for the application for an acte Vicomte chargé d'écrire in the following terms:-

"An application by a creditor under Article 2 or 3 of the Loi (1832) sur les Décrets must -

(a) be made by representation; and

(b) be accompanied by an affidavit which -

(i) exhibits the act or judgment relating to the debt, and

(ii) verifies the amount of the debt still outstanding."

9.        As I have indicated, this represents an amendment to the original wording of the law which required, on my interpretation, that an acte Vicomte chargé d'écrire could only be obtained following a judgment debt.

10.      Mr Emmanuel has, in his thorough skeleton argument, made reference to a number of cases in connection with an acte Vicomte chargé d'écrire which followed the pre-existing procedure and where an acte Vicomte chargé d'écrire was obtained following an adverse judgment.  It is not apparent, however, that any of those cases touch upon the effect of the 2014 amendment to the 1832 Law.

11.      On the information before me, it appears to me that the application by the Representor in this case is well made and I indicated that it could be returned before Court when next sitting with Jurats on a Friday for an order to be made in the normal way. 

12.      Having said that, it appears to me that a simple reliance on an acknowledgment of debt and an act of court on its registration carries with it the potential for some unfairness.  It is important that debtors are fully aware of any intention on the part of a creditor to apply for an acte Vicomte chargé d'écrire.  An application for an acte Vicomte chargé d'écrire should be supported by an affidavit:-

(i)        Confirming that the creditor has a debt for a liquidated sum which is not subject to a genuine dispute and arguable defence or counter-claim of which the creditor is aware;

(ii)       Containing prima facie evidence that the debtor has not paid the relevant debt and that the debt is now due;

(iii)      Containing evidence that the creditor has engaged or attempted to engage with the debtor in order to explain that bankruptcy and dégrèvement is imminent;

(iv)      Containing evidence that steps have been taken to make the debtor aware that an application for an acte Vicomte chargé d'écrire is to be made; and

(v)       Showing that a reasonable period has elapsed between debt falling due and the application, which would necessarily be the period of one month provided for in Article 2 of the 1832 Law.

13.      In the circumstances, I am satisfied that it was appropriate for the Representor to make an application to the Court for an acte Vicomte chargé d'écrire and so ordered.

Authorities

Loi (1832) sur les Décrets. 

Statute Law Revision (Miscellaneous Provisions) (Jersey) Law 2014. 

Royal Court Rules 2004 as amended