Godiva Mortgages Ltd v Khan & Anor

Godiva Mortgages Ltd v Khan & Anor

Mrs Khan was found to have knowingly participated in a fraudulent scheme to obtain a mortgage advance by misrepresentation, both directly and through her agents, and is liable for Godiva's losses. Keepers Legal LLP breached their contractual and tortious duties by failing to notify Godiva of material facts, but Godiva did not prove that this breach caused any loss, so only nominal damages are awarded against KL.

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 / Judgment After Trial
Outcome
Judgment for the claimant against Mrs Khan for fraudulent misrepresentation; judgment for the claimant against Keepers Legal LLP for breach of contract with nominal damages only; claim in negligence against Keepers Legal LLP dismissed.
Legal Topics
Fraudulent Misrepresentation, Breach of Contract, Negligence by Solicitors, Agency Liability, Mortgage Fraud
Civil Fraud Contract Law Tort Law Professional Negligence Fraudulent Misrepresentation Breach of Contract Negligence by Solicitors Agency Liability +1 more

Case Brief

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Parties

Godiva Mortgages Ltd

Claimant

Sophie Khan

First Defendant

Keepers Legal LLP

Second Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether Mrs Khan was liable for fraudulent misrepresentation in the mortgage application and transaction
  2. 2 Whether Keepers Legal LLP was liable for breach of contract and/or negligence in failing to notify the lender of material facts
  3. 3 Whether the claimant suffered loss as a result of the defendants' actions

Ratio Decidendi

Mrs Khan was found to have knowingly participated in a fraudulent scheme to obtain a mortgage advance by misrepresentation, both directly and through her agents, and is liable for Godiva's losses. Keepers Legal LLP breached their contractual and tortious duties by failing to notify Godiva of material facts, but Godiva did not prove that this breach caused any loss, so only nominal damages are awarded against KL.

Court Disposition

Judgment for the claimant against Mrs Khan for fraudulent misrepresentation; judgment for the claimant against Keepers Legal LLP for breach of contract with nominal damages only; claim in negligence against Keepers Legal LLP dismissed.

Orders

  • Mrs Khan to pay damages to Godiva for the mortgage advance, fees, and costs of funding to date of trial.
  • Keepers Legal LLP to pay nominal damages for breach of contract.