Burns v Bridge & Anor [2024] EWHC 2620 (Ch) (18 October 2024)

Burns v Bridge & Anor [2024] EWHC 2620 (Ch) (18 October 2024)

The definition of 'Lender's Debt' in the 2019 Deed of Priorities includes all monies and liabilities due to PFL by Mr Bridge up to £850,000, plus all interest (including compound interest as per the loan agreement) and all costs, charges, and expenses properly incurred by PFL as mortgagee in possession. The Deed does not limit 'interest' to simple interest nor 'costs' to legal costs of proceedings. On the evidence, PFL did not fail to obtain the best price reasonably obtainable for the Houses, and no surplus is due to Mrs Burns from the proceeds of sale.

Citation
[2024] EWHC 2620 (Ch)
Parties
Claimant: Sheila Burns; First Defendant: Fred Bridge; Second Defendant: Property Funding Limited
Jurisdiction
England and Wales
Judgment Date
18 October 2024
Procedural Posture
Chancery Division Business and Property Courts / Trial Judgment
Outcome
Claim dismissed as against Property Funding Limited; no surplus due to Mrs Burns.
Legal Topics
Deed of Priorities, Mortgagee's Rights, Compound Interest, Priority of Charges, Interpretation of Contracts, Sale at Undervalue, Trusts in Mortgage Context
Property Law Equity Contract Law Deed of Priorities Mortgagee's Rights Compound Interest Priority of Charges Interpretation of Contracts +2 more

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Parties

Sheila Burns

Claimant

Fred Bridge

First Defendant

Property Funding Limited

Second Defendant

Procedural Posture

Chancery Division Business and Property Courts / Trial Judgment

Legal Issues

  1. 1 Proper interpretation of 'Lender's Debt' in the 2019 Deed of Priorities, specifically the meaning of 'interest' and 'costs'
  2. 2 Whether Property Funding Limited failed to obtain the best price reasonably obtainable for the sale of the Houses, requiring an account to Mrs Burns

Ratio Decidendi

The definition of 'Lender's Debt' in the 2019 Deed of Priorities includes all monies and liabilities due to PFL by Mr Bridge up to £850,000, plus all interest (including compound interest as per the loan agreement) and all costs, charges, and expenses properly incurred by PFL as mortgagee in possession. The Deed does not limit 'interest' to simple interest nor 'costs' to legal costs of proceedings. On the evidence, PFL did not fail to obtain the best price reasonably obtainable for the Houses, and no surplus is due to Mrs Burns from the proceeds of sale.

Court Disposition

Claim dismissed as against Property Funding Limited; no surplus due to Mrs Burns.

Orders

  • Claim against Property Funding Limited dismissed.
  • No order for payment of surplus to Mrs Burns.