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 do not exclude the Bank's equitable duty to obtain a proper price for the Property. If the Bank caused a sale at an undervalue, the Defendants' liability under the Guarantee is reduced or extinguished accordingly.

Citation
[2006] EWHC 533 (QB)
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
Commercial Guarantee Claim / Trial of Preliminary Issue
Outcome
Preliminary issue answered in favour of Defendants
Legal Topics
Guarantees, Duty of Care, Sale of Security, Liability of Guarantors, Exclusion Clauses
Contract Law Banking Law Equity Guarantees Duty of Care Sale of Security Liability of Guarantors Exclusion Clauses

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

Commercial Guarantee Claim / Trial of Preliminary Issue

Legal Issues

  1. 1 Whether the express terms of the guarantee are effective to make the Defendants liable notwithstanding alleged sale of security at undervalue
  2. 2 Whether the Bank owed a duty to the guarantors to obtain a proper price for the property

Ratio Decidendi

The express terms of the Guarantee do not exclude the Bank's equitable duty to obtain a proper price for the Property. If the Bank caused a sale at an undervalue, the Defendants' liability under the Guarantee is reduced or extinguished accordingly.

Court Disposition

Preliminary issue answered in favour of Defendants

Orders

  • The provisions of the Guarantee do not render the Defendants liable if the Bank has been responsible for a sale of the Property at an undervalue.