Lloyds TSB Bank Plc v Markandan & Uddin (A Firm) [2012] EWCA Civ 65 (09 February 2012)

Lloyds TSB Bank Plc v Markandan & Uddin (A Firm) [2012] EWCA Civ 65 (09 February 2012)

Markandan & Uddin committed a breach of trust by releasing mortgage funds without completion of a genuine sale and without receiving valid undertakings or documents; completion means conventional completion, not registration; causation was established as the breach resulted in Lloyds' loss; relief under section 61 was denied due to unreasonable conduct.

Citation
[2012] EWCA Civ 65
Parties
Claimant/respondent: Lloyds TSB Bank PLC; Defendant/appellant: Markandan & Uddin (a firm)
Jurisdiction
England and Wales
Judgment Date
09 February 2012
Procedural Posture
Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed; High Court judgment affirmed.
Legal Topics
Breach of Trust, Solicitor's Duties, Mortgage Fraud, Relief Under Trustee Act 1925, Completion in Conveyancing, Causation in Breach of Trust
Property Law Trusts and Equity Professional Negligence Breach of Trust Solicitor's Duties Mortgage Fraud Relief Under Trustee Act 1925 Completion in Conveyancing +1 more

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Parties

Lloyds TSB Bank PLC

Claimant/respondent

Markandan & Uddin (a firm)

Defendant/appellant

Procedural Posture

Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Did Markandan & Uddin commit a breach of trust in releasing mortgage funds?
  2. 2 Does completion in the context of the CML Handbook mean registration or conventional completion?
  3. 3 Was Markandan & Uddin's breach of trust causative of Lloyds' loss?

Ratio Decidendi

Markandan & Uddin committed a breach of trust by releasing mortgage funds without completion of a genuine sale and without receiving valid undertakings or documents; completion means conventional completion, not registration; causation was established as the breach resulted in Lloyds' loss; relief under section 61 was denied due to unreasonable conduct.

Court Disposition

Appeal dismissed; High Court judgment affirmed.

Orders

  • Markandan & Uddin liable to reconstitute trust fund and restore £742,500 to Lloyds TSB Bank PLC.
  • Interest at 3% from 31 August 2007 until payment, compounded annually.