Bradford & Bingley Plc v Ross

The judge at first instance failed to appreciate that the sale was between connected entities, and thus misapplied the burden of proof. The mortgagee did not provide evidence that reasonable steps were taken to obtain the best price in a sale to a connected company. The appeal was allowed and the matter remitted for retrial so the proper standard and burden could be applied.

Parties: Claimant/respondent: Bradford & Bingley PLC; Defendant/appellant: Peter Lesley Ross
Jurisdiction: England and Wales
Judgment Date: 11 March 2005
Procedural Posture: Civil Appeal / Appeal From Oldham County Court Judgment
Outcome: Appeal allowed; judgment set aside; retrial ordered
Legal Topics: Sale by Mortgagee, Connected Party Transactions, Duty to Obtain Best Price, Burden of Proof in Mortgagee Sales

Property Law Mortgage Law Sale by Mortgagee Connected Party Transactions Duty to Obtain Best Price Burden of Proof in Mortgagee Sales

Case Brief

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Parties

Bradford & Bingley PLC

Claimant/respondent

Peter Lesley Ross

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Oldham County Court Judgment

Legal Issues

1 Whether the sale of mortgaged property by the mortgagee to a connected company was at an undervalue
2 Whether the mortgagee discharged its duty to obtain the best price reasonably obtainable
3 Whether the burden of proof was properly applied in the context of a sale to a connected entity

Ratio Decidendi

Court Disposition

Appeal allowed; judgment set aside; retrial ordered

Orders

Case remitted to county court for retrial before a judge with Chancery experience
Respondent to pay Appellant's costs of the appeal