There was no counterclaim. Merely as agent, therefore, the agent does not warrant that his principal is solvent, or will perform the contract (if any). In July 2008, Blemain Finance issued possession proceedings to take Mrs Thomas' home in relation to four of the agreements. In a case where the parties themselves had agreed to dispense with shorthand notes (and, consequently, no transcript of the evidence was available for the purposes of the appeal) I would be slow to interfere with the decision of the sheriff at first instance unless it could be demonstrated, clearly, that he had misunderstood the facts, applied the wrong principles or arrived at a conclusion which was manifestly unjust (see, generally, [18] Accordingly, I reject the first ground of appeal for the pursuer. Its parent company, Together Financial Services, describes itself as one of the UKs leading specialist mortgage and secured loan providers. 1 March 2010, ought to be deemed eliminated by the fact that the pursuer had not been called upon to pay interest (albeit, no doubt, at a differential, pactional rate) applying to the outstanding mortgage balance from 1 March 2010 onwards. We will also require a property enquiry certificate, a Form 12 and details of the buildings insurance cover for the property. It was a term of the mortgage offer that the loan be secured by a first mortgage over the property in the form of the draft standard security accompanying the offer. Bridging Finance Limited | Registered in England and Wales - Company Registration Number 03166982 Blemain Finance Limited is authorised and regulated by the Financial Conduct Authority | Registered in England and Wales - Company Registration Number 01185052. After the hearing, the judge ruled that the clause in the agreement relating to changes to the interest rate was unfair, and therefore not binding on Charles, for a number of reasons. If you would like to opt in, or out, of receiving news and marketing from LegalBeagles Group Ltd you can amend your settings at any time here. [3] In the CMC case Messrs Longmuir & Co were instructed by the borrowers to prepare the appropriate standard security in favour of CMC in return for CMC lending money to them. He wrote also to the fraudsters at 34 Danube Street including a copy of Mellicks' letter and requested them to contact him in order that he could take their further instructions. In determining that no interest should be awarded in respect of the sum decerned for, the sheriff had relied upon the fact that the sums owed to the defenders had been paid off but subject to a shortfall of 10,645.31. It was held that it was not necessary for the plaintiff in that case a building society who had lent on reliance of the security given, and to whom the representation of authority had not been directly made by the solicitor, to establish that he had been induced to enter into some form of dealing with the supposed principal in that case the wife. (1) (a) The small claims track is intended to provide a proportionate procedure by which most straightforward claims with a financial value of not more than 10,000 can be decided, without the need for substantial pre-hearing preparation and the formalities of a traditional trial, and without incurring large legal costs. Im going to have to sell my flat to pay them off, says Charles, adding: Its a ridiculous situation. You also agree that your information may be used to provide you with details of our services by email or telephone, Terms & Conditions | As regards the last mentioned case, without in any respect criticising the decision given in it, Judge Hegarty at para 67 of his judgment said: "It does not follow that, in every case, an agent must be regarded as warranting the identity of his client and not merely the fact that he has authority to act on the client's behalf.". This is a specific type, in fact probably the original type, of collateral contract: the agent offers to warrant his authority in return for the third party's dealing with his principal.". We use cookies to ensure that we give you the best experience on our website. The cookie is used to store the user consent for the cookies in the category "Other. The lenders sued the solicitors for their loss on the grounds, inter alia, of breach of warranty authority "as to the identity" of their clients. On 26 November Messrs Mellicks confirmed receipt of the documents including the standard security and confirmed that the funds had been transferred to Balfour and Manson. In the Cheshire Mortgage Corporation Limited ("CMC") case a separate point also arises as to the meaning and effect of a letter of obligation. Once costs including the brokers fee and an arrangement fee, had been added, the total sum was 33,038. The District of Columbia Courts now has eight community courts: DC Community Court, Mental Health Community Court, 1D Community Court, 2D/4D Community Court, 3D Community Court, 5D Community Court, 6D Community Court, and 7D Community Court. An official website of the United States government. On 1 November, the day before signing the acceptance of the offer letter, the fraudsters, again representing themselves as Mr and Mrs Cheetham, wrote to CMC on writing paper headed with the address 34 Danube Street, Edinburgh to confirm that the monthly payments in the respect of the loan were affordable by them. [9] Secondly, Mr Allison stressed that the defenders pleadings were silent both as to quantum and as to the question of interest. Reference was also made in Judge Hegarty's judgment to the case of Bristol and West Building Society v Fancy and Jackson [1997] 4 All ER 582, Bowstead and Reynolds particularly at para 9-065, SEB Trygg and a number of other English authorities. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. (See paragraph58 in the Letham Grange case). Find elections. The starting point is the pleaded value of the claim pursuant to CPR 26.8(1)(a). BlemainFinance is appealing the decision. The frauds perpetrated upon them as a result of fraudsters, each of the reclaimers involved two different pairs of individuals applying for a loan, pretending to be husband and wife who were owners of heritable property which was to institute the security for the loans. As already indicated Scots and English law reach the same result in such questions albeit, perhaps, on occasions using different terminology or concepts. We will take into account the relevant aspects of the decision specific to this case as we work with all parties to progress this matter.. They claimed she owed 52,000. The pursuer has achieved a modicum of success in terms of her appeal. (See paragraph[18] in Wilson). Debt Camel - Getting Out Of Debt UK, Follow Consumer Credit Litigation, Banking & Debt Collection on WordPress.com. We accordingly agree with the Lord Ordinary that, for that reason, the letter could not be enforced if the principal transaction were void as this one was. All rights are reserved. We have dealt with at least one case involving Blemain. However, it seems to me that the approach approved of by the Extra Division of the Inner House is not dissimilar to that adopted by the sheriff in the present case. The offer, which was valid for three months, was for a loan for one year of 350,000 plus 4,868 in fees to be added to the loan, and contained details of the repayment schedule. I have been involved in leading consumer credit and data protection cases including Harrison v Link Financial Limited (High Court), Grace v Blackhorse (Court of Appeal) and also Kotecha v Phoenix Recoveries (Court of Appeal) along with a number of other reported cases and often blog about all things consumer law orientated. Messrs Mellicks were to be involved in the obtaining of the standard security and were instructed to liaise with the borrowers' solicitor for that purpose. But opting out of some of these cookies may affect your browsing experience. Our specialist solicitors deal with everything from medical negligence claims,personal injury claims,driving offences, family law,divorce lawandresidential conveyancing toprofessional discipline, employment law,corporatelaw, regulatory lawand commercial property. [18] Accordingly, I reject the first ground of appeal for the pursuer. BLEMAIN FINANCE LIMITED Company number 01185052 Follow this company File for this company Overview Filing history People Charges More Registered office address Lake View, Lakeside, Cheadle,. However having gone on to look at the background of the case before him, and having described at para 99 the transaction as proceeding as an "ordinary conveyancing transaction", he concluded at para 100: "In those circumstances, I am quite unpersuaded that BM Solicitors impliedly warranted either the identity of their client or his title to the property in question. Mr Longmuir asked for identification documents to be produced. Having regard to the circumstances of the present case it is, in our opinion, of some significant interest to have regard to what is said shortly after in the passage just cited: "But where a plumber had done work on the instructions of an agent who, as it turned out, had no authority, but the principal named was a company which was insolvent and had no assets, it was held that as the obligation of the company was valueless, the plumber had lost nothing by the want of it, and therefore could recover no damages from the agent for breach of his implied warranty. The Defendant says that rescission as a remedy is fanciful in this case, that the Court will have to look at all the circumstances, that the borrowing was actually used for consolidation of other loans and that in reality what the Court will be doing is looking at an appropriate remedy probably of damages based on commission and charges most likely in the region of around 2,500. The documents were then sent on by Longmuir & Co to the borrowers under cover of a letter addressed to them as Mr and Mrs C Cheetham at 34 Danube Street, Edinburgh. Mis-Sold Self-Invested Personal Pension (SIPP), Kings Norton family in doomed flat so cold and damp they live in coats and dressing gown, What is black mould and what health problems can it cause, Death of two-year-old from mould in flat a defining moment, says corone, Streetwise: Portsmouth womans heartbreak as foam insulation scam leaves her home virtually worthles. Analytical cookies are used to understand how visitors interact with the website. He explained that the original title deeds had been lost. [27] In SEB Trygg Liv Holding AB v Manches (2006) 1 WLR 2276 the limited nature of the implied warranty of authority was emphasised by the Court of Appeal in a case involving solicitors who commenced arbitration proceedings in the name of a company which was no longer in existence. Third-Party cookies are set by our partners and help us to improve your experience of the website. In addition, two of the agreements contained Payment Protection Insurance, known as PPI, costing between 800 and 1,500. In the absence of such circumstances the extent of the warranty which arises by implication of law is as described in Bowstead and Reynolds. It named the borrowers as Mr and Mrs Cheetham and the address of the property to be mortgaged as 34 Danube Street, Edinburgh. Together with the instructions were included a valuation of the secured subjects by DM Hall and copies of driving licences for both Mr and Mrs Morgan for identification purposes. But the risks against which Excel is seeking to be protected in these proceedings are the commercial risks involved in lending to a person who may not be all that he claims to be. Liam added: The rules governing the content of credit agreements are inflexible and are designed to protect the consumer. [24] In any event, I reject Ms Hamiltons submissions in so far as they sought to call into question the detail and quality of the evidence before the sheriff all in terms of grounds of appeal 1 and 2 for the defenders and that for the reasons mentioned in paragraphs [17] & [18] supra. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. [16] Mr Allison also founded upon the case of Wilson. The offer letter was signed for acceptance on 2 November by "Mr and Mrs Cheetham". [28] The principal argument advanced by the reclaimers, in the present actions, as to the nature and extent of the implied warranty of authority given by a solicitor in acting for clients in the granting of a security over a property in return for a loan being made to them by a professional lender fell to be considered in a recent English case Excel Securities v Masood [2010] Lloyds Rep. P.N. Please liaise with client's solicitor to ensure that the client is fully aware of the legal implications of signing the loan agreement forms. That was a person identifying himself by the name of James Charles Whittaker Golding and claiming to be the registered proprietor of the property at 17 Richards Place. In dealing with the scope of the warranty the judge at para 59 of his judgment stated: "The essential legal principles applicable to such a claim are not in doubt. In 2007, Blemain brought possession proceedings resulting in a suspended possession order. Courts/Tribunals The Parole Board for England and Wales England and Wales Family Court Decisions (other Judges) England and Wales Court of Protection Decisions He explained that he wished to raise money and was keen to have the transaction completed quickly. Mr Recorder Stead rejected Blemains arguments and as a result, the three agreements with which he was concerned were unenforceable. [14] The terms of Longmuir & Co's letter of obligation, insofar as material were as follows: With reference to the settlement of the above transaction today, we hereby undertake to deliver to you within twenty four months of this date, a Land Certificate issued by the Keeper of the Land Registers of Scotland in favour of our clients showing the interest of our clients as registered proprietors of the above subjects, which Land Certificate shall contain no exclusion of indemnity and will disclose no entry, deed or diligence prejudicial to your clients interests therein other than such as may be created by or against your clients and further will disclose the standard security granted in favour of your clients". If, therefore, he never had authority to act on behalf of the principal or if his authority has terminated or if he exceeds the scope of his authority, he will be in breach of the implied warranty and will be liable in damages to any person to whom the warranty was given. In para 97 of his judgment Judge Hegarty said: "Excel carries on business in the financial sector, specialising in making short-term commercial loans. The case pitted Charles, a. BlemainFinance was also ordered to pay most of Mrs Thomas legal costs. FEC cases are listed alphabetically with links to summaries and (for some cases) court opinions and other documents. Both companies are in the business of secured lending. The stated value is also relevant to the wider issue of proportionality when allocating the claim [16]. The sheriff had cited the effect of the recession and the adverse feedback about the condition of the property as justification for the figure of 160,000. Both of these letters were headed "34 Danube Street". The case went to County Court. After analysing these authorities and considering the submissions made to him the judge, at para 90 of his judgment, stated: "The fundamental reason why a person, purporting to act as agent for another would normally be deemed to have warranted his authority so to act is to ensure that any person dealing with the supposed agent is protected against the risk that he does not have the authority which he claims. The sheriff had cited the effect of the recession and the adverse feedback about the condition of the property as justification for the figure of 160,000. [20] In any event, esto the sheriff was entitled to have regard to the shortfall amount, to eliminate what would otherwise have been an appropriate award of interest particularly where the defenders pleadings were silent on that very issue, was, to my mind, of doubtful legitimacy. Offering Legal Advice and Help across the North East and the UK. He had the opportunity to consider the evidence in its totality. 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blemain finance court cases
