McDonagh v Bank Of Scotland Plc & Ors

McDonagh v Bank Of Scotland Plc & Ors

The first loan agreement was a euro loan, repayable in euros, not a sterling loan. Even if the agreement could be construed otherwise, rectification would be granted for common mistake. The second loan agreement was supported by consideration and was not entered into under duress or intimidation. The receivers did not breach their duty; they properly considered whether a portfolio sale was in the best interests of the mortgagor and acted reasonably. Mr McDonagh's claims fail and are dismissed. The bank's counterclaim for the sum due under the second loan agreement succeeds.

Parties
Claimant: Brian McDonagh; First Defendant: Bank of Scotland PLC; Second Defendant: Nigel Cameron Wheeler; Third Defendant: Richard James Stanley; Fourth Defendant: Jemma Kathleen McAndrew
Jurisdiction
England and Wales
Judgment Date
30 November 2018
Procedural Posture
Civil (commercial/property) / Judgment After Trial
Outcome
Claim dismissed; counterclaim allowed
Legal Topics
Loan Agreements, Rectification, Economic Duress, Receivership, Mortgage Enforcement, Sale at Undervalue, Breach of Duty by Receivers
Contract Law Banking Law Property Law Equity Loan Agreements Rectification Economic Duress Receivership +3 more

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Parties

Brian McDonagh

Claimant

Bank of Scotland PLC

First Defendant

Nigel Cameron Wheeler

Second Defendant

Richard James Stanley

Third Defendant

Jemma Kathleen McAndrew

Fourth Defendant

Procedural Posture

Civil (commercial/property) / Judgment After Trial

Legal Issues

  1. 1 Proper construction of the first loan agreement (currency of repayment)
  2. 2 Rectification of the first loan agreement for common mistake
  3. 3 Whether the second loan agreement was entered into under duress or intimidation

Ratio Decidendi

The first loan agreement was a euro loan, repayable in euros, not a sterling loan. Even if the agreement could be construed otherwise, rectification would be granted for common mistake. The second loan agreement was supported by consideration and was not entered into under duress or intimidation. The receivers did not breach their duty; they properly considered whether a portfolio sale was in the best interests of the mortgagor and acted reasonably. Mr McDonagh's claims fail and are dismissed. The bank's counterclaim for the sum due under the second loan agreement succeeds.

Court Disposition

Claim dismissed; counterclaim allowed

Orders

  • Mr McDonagh's claims against the bank and receivers are dismissed.
  • Judgment for the bank against Mr McDonagh for the sums due under the second loan agreement.