On Pari Passu, Equality and Hotchpot in Cross-Border Insolvency
Lloyd's Maritime and Commercial Law Quarterly, pp. 95-108, 2003
Posted: 24 Mar 2003
The Privy Council (the court of final appeal for some Commonwealth countries) held in Cleaver v. Delta American Reinsurance that the application of the hotchpot rule in cross-border insolvency is underpinned by the principle of pari passu distribution. This paper aims to demonstrate that the rationale behind the hotchpot rule has nothing to do with the pari passu rule. In addition, it will be shown that the substantive decision in Cleaver v. Delta American Reinsurance is untenable due to a serious misunderstanding of section 1213 of the New York Insurance Law.
Note: This is a description of the paper and not the actual abstract.
Keywords: Pari passu, hotchpot, New York Insurance Law, pre-answer security, cross-border insolvency, bankruptcy, equality, priority, distribution policy, international insolvency
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