Lombard North Central Plc v Nugent & Ors

Lombard North Central Plc v Nugent & Ors

The Lease Purchase Agreement covered only the Prisma 250 ml Filling Machine, not the entire line. On termination, Lombard was obliged to try to sell the goods and to take reasonable care to obtain market value, and if leasing, to obtain reasonable market rent. Lombard was not in breach regarding the sale price or the rent agreed, but failed to take adequate steps to collect all rent due, entitling the guarantors to a set-off for 9 months' additional rent. Judgment is for Lombard for the sum claimed less the set-off.

Parties
Claimant: Lombard North Central PLC; Defendant: Gordon Nugent; Defendant: John Clark; Defendant: Christopher Crabtree
Jurisdiction
England and Wales
Judgment Date
06 June 2013
Procedural Posture
Civil Commercial/contract / Trial Judgment
Outcome
Judgment for claimant in part
Legal Topics
Construction of Contract Terms, Obligations of Lessor on Termination, Implied Terms in Contracts, Set Off and Counterclaim by Guarantors, Valuation of Leased Assets
Contract Law Guarantee Law Commercial Law Construction of Contract Terms Obligations of Lessor on Termination Implied Terms in Contracts Set Off and Counterclaim by Guarantors Valuation of Leased Assets

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Parties

Lombard North Central PLC

Claimant

Gordon Nugent

Defendant

John Clark

Defendant

Christopher Crabtree

Defendant

Procedural Posture

Civil Commercial/contract / Trial Judgment

Legal Issues

  1. 1 What was the subject matter of the Lease Purchase Agreement: the Prisma 250 ml Filling Machine or the entire line?
  2. 2 What obligations did Lombard owe on termination regarding sale or lease of the machinery?
  3. 3 Was Lombard in breach of any implied terms regarding sale or rental of the machinery?

Ratio Decidendi

The Lease Purchase Agreement covered only the Prisma 250 ml Filling Machine, not the entire line. On termination, Lombard was obliged to try to sell the goods and to take reasonable care to obtain market value, and if leasing, to obtain reasonable market rent. Lombard was not in breach regarding the sale price or the rent agreed, but failed to take adequate steps to collect all rent due, entitling the guarantors to a set-off for 9 months' additional rent. Judgment is for Lombard for the sum claimed less the set-off.

Court Disposition

Judgment for claimant in part

Orders

  • Defendants to pay Lombard £39,071.58