Moat Financial Services v Wilkinson [2005] EWCA Civ 1253 (11 October 2005)

Moat Financial Services v Wilkinson [2005] EWCA Civ 1253 (11 October 2005)

By signing the 1999 letter, Mr and Mrs Wilkinson agreed to be bound by the varied facility letter, which included providing a guarantee for the increased loan amount of £250,000. The 1999 letter, read together with the facility letter and the 1997 guarantee, satisfied the requirements of the Statute of Frauds 1677. Their liability as guarantors was therefore increased to £250,000.

Citation
[2005] EWCA Civ 1253
Parties
Applicant/claimant: Moat Financial Services; Respondent/defendant: David Wilkinson; Respondent/defendant: Barbara Wilkinson
Jurisdiction
England and Wales
Judgment Date
11 October 2005
Procedural Posture
Civil Appeal / Appeal From Bury County Court Decision
Outcome
Appeal allowed
Legal Topics
Guarantee Liability, Variation of Contract, Statute of Frauds, Construction of Commercial Documents
Contract Law Guarantee Law Banking Law Guarantee Liability Variation of Contract Statute of Frauds Construction of Commercial Documents

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Parties

Moat Financial Services

Applicant/claimant

David Wilkinson

Respondent/defendant

Barbara Wilkinson

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From Bury County Court Decision

Legal Issues

  1. 1 Whether the liability of Mr and Mrs Wilkinson as guarantors was capped at £100,000 or £250,000
  2. 2 Whether the guarantee was continuing or specific
  3. 3 Whether the 1999 letter satisfied the Statute of Frauds 1677

Ratio Decidendi

By signing the 1999 letter, Mr and Mrs Wilkinson agreed to be bound by the varied facility letter, which included providing a guarantee for the increased loan amount of £250,000. The 1999 letter, read together with the facility letter and the 1997 guarantee, satisfied the requirements of the Statute of Frauds 1677. Their liability as guarantors was therefore increased to £250,000.

Court Disposition

Appeal allowed

Orders

  • Appeal allowed
  • Matter remitted to Bury County Court to determine the amount of interest if not agreed