UCB Corporate Services Ltd. v Williams [2002] EWCA Civ 555 (2nd May, 2002)

UCB Corporate Services Ltd. v Williams [2002] EWCA Civ 555 (2nd May, 2002)

Where a transaction is procured by actual undue influence or misrepresentation, the victim is entitled to have it set aside as against the wrongdoer, regardless of whether she would have acted the same way absent the wrongdoing. However, as against a lender, the lender is not fixed with constructive notice if it reasonably believes the surety has been properly advised by a solicitor, unless put on notice to the contrary. In this case, the judge found Mrs Williams was represented by a solicitor and UCB was entitled to rely on that representation; thus, UCB was not fixed with constructive notice and the charge was enforceable against Mrs Williams.

Citation
[2002] EWCA Civ 555
Parties
Claimant/respondent: UCB Corporate Services Limited; Defendant/appellant: Christine Ann Williams
Jurisdiction
England and Wales
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From County Court
Outcome
Appeal dismissed
Legal Topics
Undue Influence, Constructive Notice, Mortgage Enforcement, Misrepresentation, Subrogation
Equity Property Law Banking Law Undue Influence Constructive Notice Mortgage Enforcement Misrepresentation Subrogation

Case Brief

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Parties

UCB Corporate Services Limited

Claimant/respondent

Christine Ann Williams

Defendant/appellant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From County Court

Legal Issues

  1. 1 Whether Mrs Williams' execution of the UCB Charge was procured by undue influence and/or misrepresentation by her husband
  2. 2 Whether such procurement entitles Mrs Williams to have the charge set aside as against her husband
  3. 3 Whether UCB was fixed with constructive notice of the undue influence or misrepresentation

Ratio Decidendi

Where a transaction is procured by actual undue influence or misrepresentation, the victim is entitled to have it set aside as against the wrongdoer, regardless of whether she would have acted the same way absent the wrongdoing. However, as against a lender, the lender is not fixed with constructive notice if it reasonably believes the surety has been properly advised by a solicitor, unless put on notice to the contrary. In this case, the judge found Mrs Williams was represented by a solicitor and UCB was entitled to rely on that representation; thus, UCB was not fixed with constructive notice and the charge was enforceable against Mrs Williams.

Court Disposition

Appeal dismissed

Orders

  • Order for possession of the property against Mrs Williams affirmed
  • Judgment for UCB in the sum of £1,175,803.92 against all defendants affirmed