Michael & Ors v Miller & Anor

Michael & Ors v Miller & Anor

The mortgagees did not breach their duty in the marketing and sale of the estate as the price achieved was within an acceptable bracket of valuations and the marketing process was reasonable in the circumstances. The judge erred in ordering an inquiry as to damages for the lavender plants without proper pleading or investigation of liability; the scope of the inquiry should be widened to include issues of power and duty to sever and sell the plants separately.

Parties
Appellants: Roger Michael, Julia Heywood, David Bates; Respondents and Cross Appellants: Douglas Henry Miller, Doris Miller
Jurisdiction
England and Wales
Judgment Date
22 March 2004
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court
Outcome
Appeal dismissed, cross-appeal allowed
Legal Topics
Mortgagee's Duty of Care, Sale of Mortgaged Property, Breach of Duty, Damages, Marketing of Property, Valuation Negligence
Property Law Banking Law Mortgagee's Duty of Care Sale of Mortgaged Property Breach of Duty Damages Marketing of Property Valuation Negligence

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Parties

Roger Michael, Julia Heywood, David Bates

Appellants

Douglas Henry Miller, Doris Miller

Respondents and Cross Appellants

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal and Cross Appeal From High Court

Legal Issues

  1. 1 Whether the mortgagees breached their duty to obtain the best price reasonably obtainable for the mortgaged property
  2. 2 Whether the marketing and sale process was negligent
  3. 3 Whether the mortgagees had a duty to market and sell the lavender plants separately

Ratio Decidendi

The mortgagees did not breach their duty in the marketing and sale of the estate as the price achieved was within an acceptable bracket of valuations and the marketing process was reasonable in the circumstances. The judge erred in ordering an inquiry as to damages for the lavender plants without proper pleading or investigation of liability; the scope of the inquiry should be widened to include issues of power and duty to sever and sell the plants separately.

Court Disposition

Appeal dismissed, cross-appeal allowed

Orders

  • The appeal is dismissed and the cross-appeal is allowed.
  • The order of the High Court is varied to widen the scope of the inquiry regarding the lavender plants to include issues of power and duty to sever and sell them separately, and the basis for any such duty.