Clydesdale Bank Plc v Gough (t/a JC Gough & Sons) [2017] EWHC 2230 (Ch) (05 September 2017)

Clydesdale Bank Plc v Gough (t/a JC Gough & Sons) [2017] EWHC 2230 (Ch) (05 September 2017)

There was no clear and unequivocal promise by the bank not to enforce its security before Mr Gough had an opportunity to sell assets. The contractual documents expressly reserved the bank's rights. No promissory estoppel or estoppel by convention arises. Mrs Gough signed the guarantee with independent legal advice and there is no unfairness under the Consumer Credit Act 1974. The bank is entitled to possession and repayment.

Citation
[2017] EWHC 2230 (Ch)
Parties
Claimant: Clydesdale Bank plc; First Defendant: R Gough t/a JC Gough & Sons; Second Defendant: Anne Michelle Gough
Jurisdiction
England and Wales
Judgment Date
05 September 2017
Procedural Posture
Possession and Debt Recovery Claim / High Court Trial Judgment
Outcome
Claim allowed. Counterclaim dismissed.
Legal Topics
Mortgage Enforcement, Guarantees, Promissory Estoppel, Consumer Credit Act 1974, Possession Proceedings
Banking and Finance Property Law Contract Law Mortgage Enforcement Guarantees Promissory Estoppel Consumer Credit Act 1974 Possession Proceedings

Case Brief

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Parties

Clydesdale Bank plc

Claimant

R Gough t/a JC Gough & Sons

First Defendant

Anne Michelle Gough

Second Defendant

Procedural Posture

Possession and Debt Recovery Claim / High Court Trial Judgment

Legal Issues

  1. 1 Whether the bank is entitled to possession of the properties and repayment of sums advanced
  2. 2 Whether a promissory estoppel or estoppel by convention prevents the bank from enforcing its security
  3. 3 Whether the relationship between Mrs Gough and the bank is unfair under the Consumer Credit Act 1974

Ratio Decidendi

There was no clear and unequivocal promise by the bank not to enforce its security before Mr Gough had an opportunity to sell assets. The contractual documents expressly reserved the bank's rights. No promissory estoppel or estoppel by convention arises. Mrs Gough signed the guarantee with independent legal advice and there is no unfairness under the Consumer Credit Act 1974. The bank is entitled to possession and repayment.

Court Disposition

Claim allowed. Counterclaim dismissed.

Orders

  • Possession of Hilltop Farm (WR90492) and The Chestnuts (WR131413) to be given up to the Receivers.
  • Mr Gough to pay the sums advanced by the bank totalling approximately £7 million inclusive of interest, secured by charges over the properties.