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A Leap Forward for the Recognized Use of AI and Predictive Coding in Insolvency Trials and Investigations

August 22, 2018

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When the High Court of England and Wales handed down judgment in the case of Brown v BCA Trading Ltd, it marked what is believed to be the first test of technology assisted review (TAR) for disclosure at a full trial in England.  The technology is being used increasingly and, combined with recently-proposed changes to the English disclosure regime, could result in more legal cases becoming economically viable to fight and lead to greater recoveries for creditors.

TAR also has applications beyond litigation, which can be particularly useful for insolvency practitioners (IPs, as they are often called) appointed to a company who need to find out key information and secure assets quickly with limited funds.

The BCA judgment

In May 2016, Berwin Leighton Paisner won the first contested application for its client BCA to use predictive coding in Brown v BCA Trading Ltd [2016] EWHC 1464

Singularis v Daiwa: UK banks beware!

Editors’ Note:  The Global Restructuring and Insolvency Developments team of BCLP presents this very concerning opinion for any financial institution that operates in the United Kingdom.  Specifically, in Singularis Holdings Ltd (in Official Liquidation) v Daiwa Capital Markets Europe Ltd (copy of the ruling is here), the Court of Appeal (England and Wales) considered a bank’s duty, commonly known as a Quincecare duty, to protect companies from fraud by authorised officers.  Robin Ganguly and Alexandra Kirby of Bryan Cave Leighton Paisner’s London office present the GRID readers with a summary and the key takeaways of this ruling.

Key points

  • Banks (and other financial institutions) have a duty to protect companies from fraud by authorised officers although the extent of the duty will depend upon the services being provided.
  • An objective test needs to be satisfied as to whether there were reasonable grounds for the
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