Barclays Bank Plc v Kingston & Ors

Barclays Bank Plc v Kingston & Ors

The express terms of the guarantee did not exclude the equitable duty of the bank to obtain a proper price on sale of the secured property; therefore, the defendants are not liable under the guarantee if the bank was responsible for a sale at an undervalue.

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 Clauses
Banking Law Contract Law Equity Guarantees Duties of Creditors to Guarantors Sale of Secured Property at Undervalue Interpretation of Guarantee Clauses

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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 make the defendants liable notwithstanding an 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 exclude the equitable duty of the bank to obtain a proper price on sale of the secured property; therefore, the defendants are not liable under the guarantee if the bank was responsible for a sale at an undervalue.

Court Disposition

Preliminary issue answered in favour of the defendants

Orders

  • The preliminary issue is answered: No, the express terms of the guarantee do not make the defendants liable if the bank was responsible for a sale at an undervalue.