Mullen v White

Mullen v White

Upon probate, Nicholas Mullen as executor extinguished the estate's claim under the joint and several guarantee, but acquired a right to contribution from Mr White for half the guaranteed sum and interest. The legacy to Timothy Mullen is payable with interest. Shareholder accounting is confined to contributions for company funding, excluding unrelated ventures and certain asset transfers. Settlements and payments under guarantees are subject to contribution, but legal costs and certain asset values are excluded.

Parties
Claimant/defendant/executor: Nicholas John Mullen; Defendant/part 20 Defendant: Christopher David Gordon White; Claimant: Simon Eadie; Claimant/executor: Timothy Andrew Mullen
Jurisdiction
England and Wales
Judgment Date
13 November 2017
Procedural Posture
Civil (chancery) / Judgment After Trial of Consolidated Actions
Outcome
Judgment for Timothy Mullen for the legacy and interest; declaration of Nicholas Mullen's right to contribution from Mr White; directions for final accounting between shareholders; further hearing to determine costs and consequential matters.
Legal Topics
Personal Guarantees, Contribution Between Co Guarantors, Executor's Release of Debt, Shareholder Equalisation, Loan Agreements, Interest on Legacies
Equity Trusts and Estates Company Law Contract Personal Guarantees Contribution Between Co Guarantors Executor's Release of Debt Shareholder Equalisation +2 more

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Parties

Nicholas John Mullen

Claimant/defendant/executor

Christopher David Gordon White

Defendant/part 20 Defendant

Simon Eadie

Claimant

Timothy Andrew Mullen

Claimant/executor

Procedural Posture

Civil (chancery) / Judgment After Trial of Consolidated Actions

Legal Issues

  1. 1 Terms and enforceability of loans and guarantees by deceased to company
  2. 2 Effect of executor also being a guarantor on enforceability of guarantee
  3. 3 Right to contribution between co-guarantors after release by executor

Ratio Decidendi

Upon probate, Nicholas Mullen as executor extinguished the estate's claim under the joint and several guarantee, but acquired a right to contribution from Mr White for half the guaranteed sum and interest. The legacy to Timothy Mullen is payable with interest. Shareholder accounting is confined to contributions for company funding, excluding unrelated ventures and certain asset transfers. Settlements and payments under guarantees are subject to contribution, but legal costs and certain asset values are excluded.

Court Disposition

Judgment for Timothy Mullen for the legacy and interest; declaration of Nicholas Mullen's right to contribution from Mr White; directions for final accounting between shareholders; further hearing to determine costs and consequential matters.

Orders

  • Timothy Mullen entitled to judgment for £100,000 legacy (less any part paid) with interest at 1.5% per annum compound from 15 July 2013.
  • Nicholas Mullen entitled to contribution from Christopher White for half the guaranteed sum and interest under the loan agreement.