Calvert v Clydesdale Bank Plc & Ors [2012] EWCA Civ 962 (27 June 2012)

Calvert v Clydesdale Bank Plc & Ors [2012] EWCA Civ 962 (27 June 2012)

The statutory agency of receivers appointed under the Law of Property Act 1925 is not terminated by the mortgagor's mental incapacity; the bank's right to enforce security and appoint receivers remains valid regardless of the mortgagor's capacity at the time of enforcement. No evidence was provided to support a claim of sale at undervalue sufficient to benefit the estate.

Citation
[2012] EWCA Civ 962
Parties
Applicant/claimant: Dolores Calvert (Personal Representative of Peter Robert Calvert - Deceased); Respondent/defendant: Clydesdale Bank PLC; Respondent/defendant: Brian Parkinson; Respondent/defendant: David Robert Heap; Respondent/defendant: Walker Singleton (Commercial) Ltd; Respondent/defendant: Walker Singleton (Asset Management) Ltd
Jurisdiction
England and Wales
Judgment Date
27 June 2012
Procedural Posture
Civil Appeal / Renewed Oral Application for Permission to Appeal
Outcome
Permission to appeal refused; application for protective costs order dismissed.
Legal Topics
Appointment of Receivers, Agency and Mental Incapacity, Sale at Undervalue, Enforcement of Security, Protective Costs Order
Property Law Mental Capacity Law Banking Law Appointment of Receivers Agency and Mental Incapacity Sale at Undervalue Enforcement of Security Protective Costs Order

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 6 Party arguments 2 Amounts and remedies 8
Sign in to unlock

Parties

Dolores Calvert (Personal Representative of Peter Robert Calvert - Deceased)

Applicant/claimant

Clydesdale Bank PLC

Respondent/defendant

Brian Parkinson

Respondent/defendant

David Robert Heap

Respondent/defendant

Walker Singleton (Commercial) Ltd

Respondent/defendant

Walker Singleton (Asset Management) Ltd

Respondent/defendant

Procedural Posture

Civil Appeal / Renewed Oral Application for Permission to Appeal

Legal Issues

  1. 1 Whether receivers could be validly appointed and act under a mortgage when the mortgagor had lost mental capacity
  2. 2 Whether the sale of the property was at an undervalue and in breach of duty
  3. 3 Whether the lack of a Mental Health Act receiver invalidated the receivers' actions

Ratio Decidendi

The statutory agency of receivers appointed under the Law of Property Act 1925 is not terminated by the mortgagor's mental incapacity; the bank's right to enforce security and appoint receivers remains valid regardless of the mortgagor's capacity at the time of enforcement. No evidence was provided to support a claim of sale at undervalue sufficient to benefit the estate.

Court Disposition

Permission to appeal refused; application for protective costs order dismissed.

Orders

  • Application for permission to appeal dismissed.
  • Application for protective costs order dismissed.