Barclays Bank Plc v Kingston & Ors [2006] EWHC 533 (QB) (17 March 2006)

Barclays Bank Plc v Kingston & Ors [2006] EWHC 533 (QB) (17 March 2006)

The express terms of the Guarantee did not clearly exclude the Bank's equitable duty to the guarantors to obtain a proper price on sale of the secured property; therefore, if the Bank was responsible for a sale at an undervalue, the defendants' liability under the guarantee is reduced or extinguished accordingly.

Citation
[2006] EWHC 533
Parties
Claimant: Barclays Bank PLC; Defendant: Alan Roger Kingston; Defendant: Christopher Miles Kelly; Defendant: Malcolm St. Clair Grant; Defendant: Noel Verbruggen; Defendant: Tom Dixon
Jurisdiction
England and Wales
Judgment Date
17 March 2006
Procedural Posture
Civil / Trial of Preliminary Issue
Outcome
Preliminary issue answered in favour of the defendants
Legal Topics
Guarantees, Duties of Creditors to Guarantors, Sale of Secured Property at Undervalue, Interpretation of Guarantee Instruments
Banking Law Contract Law Equity Guarantees Duties of Creditors to Guarantors Sale of Secured Property at Undervalue Interpretation of Guarantee Instruments

Case Brief

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Parties

Barclays Bank PLC

Claimant

Alan Roger Kingston

Defendant

Christopher Miles Kelly

Defendant

Malcolm St. Clair Grant

Defendant

Noel Verbruggen

Defendant

Tom Dixon

Defendant

Procedural Posture

Civil / Trial of Preliminary Issue

Legal Issues

  1. 1 Whether the express terms of the guarantee render the defendants liable notwithstanding the alleged sale of security at an undervalue
  2. 2 Whether the bank owed a duty to the guarantors to obtain a proper price on sale of the secured property

Ratio Decidendi

The express terms of the Guarantee did not clearly exclude the Bank's equitable duty to the guarantors to obtain a proper price on sale of the secured property; therefore, if the Bank was responsible for a sale at an undervalue, the defendants' liability under the guarantee is reduced or extinguished accordingly.

Court Disposition

Preliminary issue answered in favour of the defendants

Orders

  • The preliminary issue is answered: No.