LIV Bridging Finance Ltd v EAD Solicitors LLB [2020] EWHC 1590 (Ch) (18 June 2020)

LIV Bridging Finance Ltd v EAD Solicitors LLB [2020] EWHC 1590 (Ch) (18 June 2020)

EAD breached its duty by paying away loan monies without obtaining proper security for the Second and Third Loans. Equitable compensation is limited to losses within the scope of EAD's duty, namely the amounts advanced without security. EAD has no real prospect of defending the claim for these loans; summary judgment is granted for £250,000.

Citation
[2020] EWHC 1590 (Ch)
Parties
Claimant: LIV Bridging Finance Limited; Defendant: EAD Solicitors LLP (in administration)
Jurisdiction
England and Wales
Judgment Date
18 June 2020
Procedural Posture
Summary Judgment Application / Judgment on Summary Judgment Application
Outcome
Summary judgment granted in part for the Claimant
Legal Topics
Breach of Trust, Equitable Compensation, Solicitor's Duties, Summary Judgment, Fiduciary Duty, SAAMCO Principle
Trusts Professional Negligence Equity Property Law Breach of Trust Equitable Compensation Solicitor's Duties Summary Judgment +2 more

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Parties

LIV Bridging Finance Limited

Claimant

EAD Solicitors LLP (in administration)

Defendant

Procedural Posture

Summary Judgment Application / Judgment on Summary Judgment Application

Legal Issues

  1. 1 Whether EAD breached trust by paying away loan monies without obtaining proper security
  2. 2 Whether EAD owed and breached fiduciary and contractual duties to LIV
  3. 3 Scope and quantification of equitable compensation for breach of trust

Ratio Decidendi

EAD breached its duty by paying away loan monies without obtaining proper security for the Second and Third Loans. Equitable compensation is limited to losses within the scope of EAD's duty, namely the amounts advanced without security. EAD has no real prospect of defending the claim for these loans; summary judgment is granted for £250,000.

Court Disposition

Summary judgment granted in part for the Claimant

Orders

  • Judgment for LIV Bridging Finance Limited in the sum of £250,000 for the Second and Third Loans
  • Entitlement to equitable or statutory interest on £250,000 to be determined following written submissions