Yorkshire Bank Plc v Tinsley [2004] EWCA Civ 816 (25 June 2004)

Yorkshire Bank Plc v Tinsley [2004] EWCA Civ 816 (25 June 2004)

A substitute mortgage granted to the same lender as a condition of releasing earlier voidable mortgages tainted by undue influence, of which the lender had constructive notice, is itself voidable, even if undue influence is not operative at the time of the substitute mortgage. The inseparable connection between the transactions and the lender's constructive notice of the original defect render the new mortgage voidable.

Citation
[2004] EWCA Civ 816
Parties
Respondent/claimant: Yorkshire Bank Plc; Appellant/defendant: Pamela Tinsley
Jurisdiction
England and Wales
Judgment Date
25 June 2004
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From County Court Order for Possession
Outcome
Appeal allowed; order for possession discharged; respondent's claim dismissed; judgment for appellant on counterclaim; 1994 mortgage set aside.
Legal Topics
Undue Influence, Voidable Mortgages, Constructive Notice, Remortgage/substitution, Unconscionable Bargain
Equity Property Law Family Law Undue Influence Voidable Mortgages Constructive Notice Remortgage/substitution Unconscionable Bargain

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Parties

Yorkshire Bank Plc

Respondent/claimant

Pamela Tinsley

Appellant/defendant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From County Court Order for Possession

Legal Issues

  1. 1 Whether a subsequent mortgage (1994) is voidable when earlier mortgages (1988, 1991) were voidable for undue influence and the lender had constructive notice
  2. 2 Whether the 1994 mortgage was an unconscionable bargain
  3. 3 Whether constructive notice of undue influence in prior mortgages affects a substitute mortgage

Ratio Decidendi

A substitute mortgage granted to the same lender as a condition of releasing earlier voidable mortgages tainted by undue influence, of which the lender had constructive notice, is itself voidable, even if undue influence is not operative at the time of the substitute mortgage. The inseparable connection between the transactions and the lender's constructive notice of the original defect render the new mortgage voidable.

Court Disposition

Appeal allowed; order for possession discharged; respondent's claim dismissed; judgment for appellant on counterclaim; 1994 mortgage set aside.

Orders

  • Order for possession granted to the Bank discharged
  • Respondent's claim dismissed