The Mortgage Business Plc v Green

The Mortgage Business Plc v Green

The Bank was not put on inquiry as to undue influence because, on the evidence, it was not aware that Mrs Green was acting as surety for her son's debts; the mortgage was presented as a joint advance for joint purposes. No actual, imputed, or constructive notice of undue influence was established. Therefore, any undue influence by Lars Green does not affect the Bank's rights, and the Bank is entitled to possession.

Parties
Claimant: The Mortgage Business PLC; First Defendant: Lars Green; Second Defendant: Lone Green
Jurisdiction
England and Wales
Judgment Date
27 June 2013
Procedural Posture
Civil Mortgage Possession and Undue Influence / Judgment After Trial
Outcome
Claim allowed; order for possession to the Bank; counterclaim dismissed; case transferred to county court for possession order.
Legal Topics
Undue Influence, Mortgage Possession, Constructive Notice, Imputed Notice, Subrogation, Agency, Remortgage, Suretyship
Property Law Equity and Trusts Banking Law Undue Influence Mortgage Possession Constructive Notice Imputed Notice Subrogation +3 more

Case Brief

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Parties

The Mortgage Business PLC

Claimant

Lars Green

First Defendant

Lone Green

Second Defendant

Procedural Posture

Civil Mortgage Possession and Undue Influence / Judgment After Trial

Legal Issues

  1. 1 Whether Mrs Green's obligations under the 2008 mortgage and further advance were procured by undue influence from her son Lars Green
  2. 2 Whether the Bank's rights under the mortgage are affected by any undue influence
  3. 3 Whether the Bank had actual, imputed, or constructive notice of undue influence

Ratio Decidendi

The Bank was not put on inquiry as to undue influence because, on the evidence, it was not aware that Mrs Green was acting as surety for her son's debts; the mortgage was presented as a joint advance for joint purposes. No actual, imputed, or constructive notice of undue influence was established. Therefore, any undue influence by Lars Green does not affect the Bank's rights, and the Bank is entitled to possession.

Court Disposition

Claim allowed; order for possession to the Bank; counterclaim dismissed; case transferred to county court for possession order.

Orders

  • Order for possession of the property in favour of the Bank
  • Counterclaim dismissed