Part of the requirement placed on the High Court Enforcement Officer (HCEO) is to get the best net proceeds of sale (which means that the cost of selling must also be considered alongside achieving the best price) for the items when they are sold to satisfy the writ.

Here are some of the controlled goods we have had to take to the sale stage in the past:

• Luxury vehicles, including Ferraris
• Light aircraft
• Silver bullion
• Art
• Jewellery
• Collectibles and unusual items with a niche buyer
• Specialist equipment, such as Formula One machine tools and trailers

So, what are the different ways we achieve the best price?

The method of sale that is included within the Tribunals Courts and Enforcement Act (TCEA) 2007 is by public auction, which can include an online auction site, such as eBay.

However, with high value and/or specialist items, a general auction house or site may not achieve the best price if the target buyer is not taking part. A specialist auction may be the best option or an alternative method of sale.

Specialist auctions

Specialist auctions are normally particularly good for art, jewellery and collectibles, as you can be confident that they are attracting the right type of buyer and therefore are more likely to achieve a higher price.

The downside is that you may need to wait some time before the right auction is taking place for those goods. This in turn can mean increased storage costs and insurance (assuming the goods have been removed) and a longer delay for the creditor to receive payment.

It is a judgment call to be agreed by all parties as to whether any wait is more than offset by the likelihood of achieving a higher sale price.

Alternative methods of sale

Under the Taking Control of Goods Regulations (TCoG) 2013, the HCEO may apply to court for sale by one of these alternative methods:

• Private treaty
• Sealed bids
• Advertisement

The application is made under CPR rule 84.11 and must give the grounds for the application.

Sale by private treaty

This is where the goods are sold to a specific buyer, either an individual or an organisation, who will be interested in buying those items. For example, with the F1 machine tools, another F1 company was interested in buying them.

Sealed bids

Potential buyers are invited to submit their offers and relevant details (cash buyer, for example) in a sealed envelope by a certain date. All bids are opened simultaneously after the deadline and the seller can choose which to accept based on the price offered and the buyers’ circumstances.

The bids are confidential, to prevent bidding wars.

Advertisement

An advertisement to sell the goods can be placed on online marketplaces, social media, specialist magazines or websites. The advert must comply with advertising codes of practice.

Notice for sale stage

Under the regulations, the debtor must be provided seven clear days’ notice that goods are to be sold, giving them a final opportunity to pay the sums due to avoid the sale. However, this period can be shortened with the consent of the debtor.

This is required regardless of the method of sale used.

Get in touch

If you have a debtor (or a client’s debtor) with high value items that might be suitable for an HCEO to take control of under a writ, get in touch. We have a great deal of experience in understanding how to achieve the best price for unusual and valuable goods.