M5 Associates Ltd v Wetton & Anor [2025] EWHC 2682 (KB) (17 October 2025)

M5 Associates Ltd v Wetton & Anor [2025] EWHC 2682 (KB) (17 October 2025)

The claimant failed to prove on the balance of probabilities that Mr Watkins' conduct in failing to pay the promised sums amounted to fraud, negligence, or misconduct sufficient to trigger liability above the £250,000 cap in the personal guarantee. The evidence, including contemporaneous documents and inherent likelihoods, did not support a finding of dishonest intent or misconduct at the time the promises were made.

Citation
[2025] EWHC 2682 (KB)
Parties
Claimant: M5 Associates Limited; First Defendant: Simon Nevill Wetton; Second Defendant: Phillip Baden Watkins
Jurisdiction
England and Wales
Judgment Date
17 October 2025
Procedural Posture
Commercial Claim for Monies Due Under Personal Guarantees / Review Hearing Following Original Judgment
Outcome
Claim dismissed insofar as it seeks to raise liability above the £250,000 guarantee cap; cap remains at £250,000 for each defendant.
Legal Topics
Personal Guarantees, Default Interest, Fraud, Negligence, Misconduct, Loan Facility Agreements
Commercial Law Contract Law Personal Guarantees Default Interest Fraud Negligence Misconduct Loan Facility Agreements

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Parties

M5 Associates Limited

Claimant

Simon Nevill Wetton

First Defendant

Phillip Baden Watkins

Second Defendant

Procedural Posture

Commercial Claim for Monies Due Under Personal Guarantees / Review Hearing Following Original Judgment

Legal Issues

  1. 1 Whether the claimant proved that liability under the deed of guarantee beyond the cap of £250,000 arises due to fraud, negligence, or misconduct of Mr Watkins
  2. 2 Whether the promises made by the defendants to pay additional sums are enforceable over and above the guarantee cap

Ratio Decidendi

The claimant failed to prove on the balance of probabilities that Mr Watkins' conduct in failing to pay the promised sums amounted to fraud, negligence, or misconduct sufficient to trigger liability above the £250,000 cap in the personal guarantee. The evidence, including contemporaneous documents and inherent likelihoods, did not support a finding of dishonest intent or misconduct at the time the promises were made.

Court Disposition

Claim dismissed insofar as it seeks to raise liability above the £250,000 guarantee cap; cap remains at £250,000 for each defendant.

Orders

  • Parties to file a draft order agreed as far as possible within 14 days of judgment, with written submissions on any consequential matters not agreed.