Sutherland Professional Funding Ltd v Bakewells (a firm) & Ors (Rev 1)

Sutherland Professional Funding Ltd v Bakewells (a firm) & Ors (Rev 1)

Clause 5.1 of the MoA creates a primary obligation on Bakewells to pay SPFL the Total Amount Payable under the unenforceable CCA loan agreements. The obligation is not limited to cases where unenforceability is due to Bakewells' default; it applies regardless of the reason for unenforceability. There is no warranty by SPFL that the forms were CCA compliant. Bakewells are not liable for default interest, as such interest is not recoverable from the debtors due to statutory non-compliance, and the certification provided by SPFL does not conclusively establish the sum due under clause 5.1.

Parties
Claimant: Sutherland Professional Funding Limited; 1st Defendant: Bakewells (A Firm); 2nd Defendant: Mark Cadell Collins; 3rd Defendant: Martin Gerard Jinks; 4th Defendant: Andrew Robert Murfin
Jurisdiction
England and Wales
Judgment Date
03 September 2013
Procedural Posture
Civil / Trial Judgment
Outcome
Claim allowed in part
Legal Topics
Guarantee and Indemnity, Unenforceable Contracts, Consumer Credit Act Compliance, Interpretation of Contractual Clauses
Contract Law Consumer Credit Law Guarantee and Indemnity Unenforceable Contracts Consumer Credit Act Compliance Interpretation of Contractual Clauses

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Parties

Sutherland Professional Funding Limited

Claimant

Bakewells (A Firm)

1st Defendant

Mark Cadell Collins

2nd Defendant

Martin Gerard Jinks

3rd Defendant

Andrew Robert Murfin

4th Defendant

Procedural Posture

Civil / Trial Judgment

Legal Issues

  1. 1 Whether clause 5.1 of the MoA creates a primary obligation or a guarantee
  2. 2 Whether Bakewells are liable under clause 5.1 for unenforceable CCA loan agreements
  3. 3 Whether SPFL can recover default interest from Bakewells

Ratio Decidendi

Clause 5.1 of the MoA creates a primary obligation on Bakewells to pay SPFL the Total Amount Payable under the unenforceable CCA loan agreements. The obligation is not limited to cases where unenforceability is due to Bakewells' default; it applies regardless of the reason for unenforceability. There is no warranty by SPFL that the forms were CCA compliant. Bakewells are not liable for default interest, as such interest is not recoverable from the debtors due to statutory non-compliance, and the certification provided by SPFL does not conclusively establish the sum due under clause 5.1.

Court Disposition

Claim allowed in part

Orders

  • SPFL is entitled to recover from Bakewells under clause 5.1 of the MoA the total of the Total Amount(s) Payable under the unenforceable CCA loan agreements, but not any sum by way of default interest.
  • SPFL is entitled to recover interest at a rate and for a period to be assessed after hand down of this judgment on the judgment sum pursuant to s.35A of the Senior Courts Act 1985.