L Morgan & Co v Jenkins O'Dowd & Barth

L Morgan & Co v Jenkins O'Dowd & Barth

The application for joinder and inquiry is misconceived as the Royal Bank of Scotland is an innocent third party entitled to rely on its current position; the defendant must comply with the existing order to procure discharge of charges by paying the sums required by the bank.

Parties
Claimant: L Morgan & Co; Defendant: Jenkins O'Dowd & Barth; Third Party: Royal Bank of Scotland
Jurisdiction
England and Wales
Judgment Date
19 November 2008
Procedural Posture
Application / Post Judgment Enforcement
Outcome
Application dismissed except for extension of time.
Legal Topics
Solicitor's Undertakings, Mortgage Discharge, Joinder of Parties, Enforcement of Undertakings
Conveyancing Professional Negligence Banking Law Solicitor's Undertakings Mortgage Discharge Joinder of Parties Enforcement of Undertakings

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Parties

L Morgan & Co

Claimant

Jenkins O'Dowd & Barth

Defendant

Royal Bank of Scotland

Third Party

Procedural Posture

Application / Post Judgment Enforcement

Legal Issues

  1. 1 Whether the Royal Bank of Scotland should be joined as a party to determine the sum required to discharge charges
  2. 2 Whether the court should direct an inquiry into the sum payable for discharge of mortgages
  3. 3 Whether the defendant solicitors can enforce hypothetical terms against an innocent third party bank

Ratio Decidendi

The application for joinder and inquiry is misconceived as the Royal Bank of Scotland is an innocent third party entitled to rely on its current position; the defendant must comply with the existing order to procure discharge of charges by paying the sums required by the bank.

Court Disposition

Application dismissed except for extension of time.

Orders

  • Defendant to comply with Blackburne J's order within 14 days.
  • Application for joinder and inquiry dismissed.