Wood v Commercial First Business Ltd & Ors [2021] EWHC 1403 (Ch) (07 June 2021)

Wood v Commercial First Business Ltd & Ors [2021] EWHC 1403 (Ch) (07 June 2021)

The court accepted the defendants' account regarding disputed payments, held that only simple interest was available to both parties (at different rates reflecting their respective borrowing costs), declined to order an occupation rent as the land was already owned by Mrs Wood, and refused an account of profits against the second and third defendants. The restitutionary exercise is not punitive but aims to restore parties to their pre-contractual positions.

Citation
[2021] EWHC 1403 (Ch)
Parties
Claimant: Frances Elizabeth Wood; First Defendant: Commercial First Business Limited (Dissolved); Second Defendant: Business Mortgage Finance 5 PLC; Third Defendant: Business Mortgage Finance 7 PLC
Jurisdiction
England and Wales
Judgment Date
07 June 2021
Procedural Posture
Civil Property/trusts/rescission / Post Judgment Account Determination Following Rescission Order
Outcome
Account determined in favour of the defendants' version; directions given for calculation of interest and no further relief granted.
Legal Topics
Equitable Rescission, Secret Commissions, Unfair Relationships, Restitution, Interest on Restitution, Account of Profits, Use and Occupation Rent
Equity Property Law Contract Law Consumer Credit Equitable Rescission Secret Commissions Unfair Relationships Restitution +3 more

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 3 Authorities cited 13 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Frances Elizabeth Wood

Claimant

Commercial First Business Limited (Dissolved)

First Defendant

Business Mortgage Finance 5 PLC

Second Defendant

Business Mortgage Finance 7 PLC

Third Defendant

Procedural Posture

Civil Property/trusts/rescission / Post Judgment Account Determination Following Rescission Order

Legal Issues

  1. 1 Whether certain payments by the claimant were properly credited in the account
  2. 2 Whether the claimant is entitled to credit for a lump sum overpayment
  3. 3 Whether simple or compound interest applies and at what rate

Ratio Decidendi

The court accepted the defendants' account regarding disputed payments, held that only simple interest was available to both parties (at different rates reflecting their respective borrowing costs), declined to order an occupation rent as the land was already owned by Mrs Wood, and refused an account of profits against the second and third defendants. The restitutionary exercise is not punitive but aims to restore parties to their pre-contractual positions.

Court Disposition

Account determined in favour of the defendants' version; directions given for calculation of interest and no further relief granted.

Orders

  • Repayments to be credited as per the defendants' account.
  • Simple interest awarded: 4% over 3-month LIBOR on sums due to Mrs Wood; 2% over 3-month LIBOR on sums due to defendants.