Cole & Ors v Howarth & Anor [2022] EWHC 780 (Ch) (08 April 2022)

Cole & Ors v Howarth & Anor [2022] EWHC 780 (Ch) (08 April 2022)

The court found that an oral contract was made on 3 July 2015 between Mr Cole as lender and Mr Howarth as borrower (with Mr Kay acting as agent), for a loan of £200,000, repayable within 14 days with £5,000 interest, and £1,000 per day thereafter. The evidence showed Mr Howarth was the borrower, not Mr Kay, and the...

Source-derived case information.

Citation
[2022] EWHC 780 (Ch)
Parties
First Claimant: Roy Harry Cole; Second Claimant: Bury Van Hire Limited; Third Claimant: Bury Vehicle Leasing Limited; Fourth Claimant: H&A Holdings Limited; First Defendant: Andrew Howarth; Second Defendant: Max Henry Kay; Third Defendant: Joseph Tyrrell
Jurisdiction
England and Wales
Judgment Date
08 April 2022
Procedural Posture
Chancery Division Civil Claim / Trial Judgment
Outcome
Judgment for the First Claimant against the First Defendant.
Legal Topics
Loan Agreements, Oral Contracts, Security for Loans, Repayment Terms, Interest Rates, Agency, Guarantee and Indemnity
Contract Law Commercial Law Loan Agreements Oral Contracts Security for Loans Repayment Terms Interest Rates Agency +1 more

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Parties

Roy Harry Cole

First Claimant

Bury Van Hire Limited

Second Claimant

Bury Vehicle Leasing Limited

Third Claimant

H&A Holdings Limited

Fourth Claimant

Andrew Howarth

First Defendant

Max Henry Kay

Second Defendant

Joseph Tyrrell

Third Defendant

Procedural Posture

Chancery Division Civil Claim / Trial Judgment

Legal Issues

  1. 1 Who was the lender and borrower under the July 2015 loan?
  2. 2 What were the terms of the loan agreement?
  3. 3 Was the loan agreement binding and enforceable against the First Defendant?

Ratio Decidendi

The court found that an oral contract was made on 3 July 2015 between Mr Cole as lender and Mr Howarth as borrower (with Mr Kay acting as agent), for a loan of £200,000, repayable within 14 days with £5,000 interest, and £1,000 per day thereafter. The evidence showed Mr Howarth was the borrower, not Mr Kay, and the loan was not made by the company. Only £30,000 was repaid; £170,000 plus interest remains due.

Court Disposition

Judgment for the First Claimant against the First Defendant.

Orders

  • First Defendant to pay £170,000 principal, £5,000 interest for the initial period, and further interest at £1,000 per day from 18 July 2015 to 17 January 2016.
  • Interest on £175,000 from 18 January 2016 to judgment at 2% above base rate.