Moat Financial Services v Wilkinson

Moat Financial Services v Wilkinson

The effect of the 1999 letter, signed by Mr and Mrs Wilkinson, was to vary the facility letter and increase their liability as guarantors to £250,000. The letter, when read with the facility letter and the 1997 guarantee, satisfied the requirements of the Statute of Frauds. The appeal was allowed and the respondents' liability was increased to £250,000.

Parties
Applicant/claimant: Moat Financial Services; Respondent/defendant: David Wilkinson; Respondent/defendant: Barbara Wilkinson
Jurisdiction
England and Wales
Judgment Date
11 October 2005
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed
Legal Topics
Variation of Guarantee, Statute of Frauds, Liability of Guarantors
Contract Law Guarantee Law Variation of Guarantee Statute of Frauds Liability of Guarantors

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Parties

Moat Financial Services

Applicant/claimant

David Wilkinson

Respondent/defendant

Barbara Wilkinson

Respondent/defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the liability of Mr and Mrs Wilkinson as guarantors was capped at £100,000 or £250,000
  2. 2 Whether the guarantee was continuing or specific
  3. 3 Whether the 1999 letter satisfied the Statute of Frauds

Ratio Decidendi

The effect of the 1999 letter, signed by Mr and Mrs Wilkinson, was to vary the facility letter and increase their liability as guarantors to £250,000. The letter, when read with the facility letter and the 1997 guarantee, satisfied the requirements of the Statute of Frauds. The appeal was allowed and the respondents' liability was increased to £250,000.

Court Disposition

Appeal allowed

Orders

  • Appeal allowed
  • Matter remitted to Bury County Court to determine the amount of interest if not agreed