Bassano v Toft & Ors

Bassano v Toft & Ors

Mr Toft's loan agreement was a non-commercial, one-off transaction not requiring a consumer credit licence and enforceable against Mrs Bassano. Borro's loan agreement was properly executed by electronic signature and Borro did not lose its security interest by parting with possession, as custody was transferred to agents for sale purposes, not surrendered. Borro has priority to the proceeds of sale of the viola.

Parties
Claimant: Kathryn Bassano; First Defendant: Alfred Toft; Second Defendants: Peter Biddulph and Peter Biddulph Ltd; Third Defendants: Borro Loan Ltd and Borro Loan 2 Ltd
Jurisdiction
England and Wales
Judgment Date
26 February 2014
Procedural Posture
Civil / Judgment
Outcome
Judgment for Mr Toft and Borro Loan Ltd.
Legal Topics
Enforceability of Loan Agreements, Consumer Credit Act Compliance, Priority of Security Interests, Electronic Signatures, Loss of Security Interest by Parting With Possession
Contract Law Consumer Credit Secured Transactions Enforceability of Loan Agreements Consumer Credit Act Compliance Priority of Security Interests Electronic Signatures Loss of Security Interest by Parting With Possession

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Parties

Kathryn Bassano

Claimant

Alfred Toft

First Defendant

Peter Biddulph and Peter Biddulph Ltd

Second Defendants

Borro Loan Ltd and Borro Loan 2 Ltd

Third Defendants

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Is Mr Toft's loan agreement enforceable under the Consumer Credit Act 1974?
  2. 2 Is Borro's loan agreement properly executed and enforceable?
  3. 3 Did Borro lose its security interest in the viola by parting with possession?

Ratio Decidendi

Mr Toft's loan agreement was a non-commercial, one-off transaction not requiring a consumer credit licence and enforceable against Mrs Bassano. Borro's loan agreement was properly executed by electronic signature and Borro did not lose its security interest by parting with possession, as custody was transferred to agents for sale purposes, not surrendered. Borro has priority to the proceeds of sale of the viola.

Court Disposition

Judgment for Mr Toft and Borro Loan Ltd.

Orders

  • Mr Toft awarded £100,000 plus contractual interest at £2,500 per month uncompounded.
  • Borro Loan Ltd awarded £130,000 plus contractual interest at 2.49% compounded monthly.