Godiva Mortgages Ltd v Khan & Anor [2012] EWHC 1757 (Ch) (27 June 2012)

Godiva Mortgages Ltd v Khan & Anor [2012] EWHC 1757 (Ch) (27 June 2012)

Mrs Khan was liable for fraudulent misrepresentation because she was responsible for the false statements made in the mortgage application, either directly or through her agent MFS, and she signed a declaration accepting responsibility for the truth of the application. The evidence did not support her claim to be an innocent victim. Keepers Legal LLP was not found liable for fraud but the judgment required evidence to establish negligence or breach of contract, which was not actively defended.

Citation
[2012] EWHC 1757 (Ch)
Parties
Claimant: Godiva Mortgages Ltd; First Defendant: Sophie Khan; Second Defendant: Keepers Legal LLP
Jurisdiction
England and Wales
Judgment Date
27 June 2012
Procedural Posture
Civil (chancery Division) / Judgment After Trial
Outcome
Judgment for the claimant against Mrs Khan for fraudulent misrepresentation. Judgment against Keepers Legal LLP subject to proof of negligence/breach of contract.
Legal Topics
Fraudulent Misrepresentation, Negligence, Breach of Contract, Agency, Mortgage Fraud, Solicitor's Duties
Fraud Contract Law Tort Law Property Law Fraudulent Misrepresentation Negligence Breach of Contract Agency +2 more

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Parties

Godiva Mortgages Ltd

Claimant

Sophie Khan

First Defendant

Keepers Legal LLP

Second Defendant

Procedural Posture

Civil (chancery Division) / Judgment After Trial

Legal Issues

  1. 1 Whether Mrs Khan was liable for fraudulent misrepresentation in the mortgage application to Godiva.
  2. 2 Whether Keepers Legal LLP was liable in negligence and/or breach of contract to Godiva for failing to advise of matters indicating fraud.

Ratio Decidendi

Mrs Khan was liable for fraudulent misrepresentation because she was responsible for the false statements made in the mortgage application, either directly or through her agent MFS, and she signed a declaration accepting responsibility for the truth of the application. The evidence did not support her claim to be an innocent victim. Keepers Legal LLP was not found liable for fraud but the judgment required evidence to establish negligence or breach of contract, which was not actively defended.

Court Disposition

Judgment for the claimant against Mrs Khan for fraudulent misrepresentation. Judgment against Keepers Legal LLP subject to proof of negligence/breach of contract.

Orders

  • Damages to be assessed against Mrs Khan for fraudulent misrepresentation.
  • Further directions regarding liability of Keepers Legal LLP.