Bird & Anor v Lantern Recovery Llp & Ors

Bird & Anor v Lantern Recovery Llp & Ors

The court found that the deceased's loans to the defendants were valid and repayable, that the dividend waivers (except one forged) were procured by undue influence and must be set aside, and that alleged gifts for the benefit of the defendants' family were not valid. The counterclaims for debts allegedly owed by the deceased were fabricated and dismissed. The estate is entitled to repayment of loans and unpaid dividends with interest.

Parties
Claimant: David Walter Bird; Claimant: Sharon Montgomery; Defendant: Lantern Recovery LLP; Defendant: Lantern Recovery Specialists PLC; Defendant: Lantern Services (Holdings) Limited; Defendant: Raymond Michael Coleman; Defendant: Lee Coleman; Defendant: Craig Coleman
Jurisdiction
England and Wales
Judgment Date
12 May 2021
Procedural Posture
Civil / Final Judgment
Outcome
Judgment for the claimants.
Legal Topics
Undue Influence, Dividend Waivers, Beneficial Ownership, Loan Repayment, Forgery, Tax Planning
Trusts and Estates Company Law Equity Undue Influence Dividend Waivers Beneficial Ownership Loan Repayment Forgery +1 more

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Parties

David Walter Bird

Claimant

Sharon Montgomery

Claimant

Lantern Recovery LLP

Defendant

Lantern Recovery Specialists PLC

Defendant

Lantern Services (Holdings) Limited

Defendant

Raymond Michael Coleman

Defendant

Lee Coleman

Defendant

Craig Coleman

Defendant

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether certain lifetime loans or gifts by the deceased were valid or procured by undue influence
  2. 2 Whether dividend waivers signed by the deceased should be set aside for undue influence
  3. 3 Whether the deceased's estate is entitled to repayment of loans and unpaid dividends

Ratio Decidendi

The court found that the deceased's loans to the defendants were valid and repayable, that the dividend waivers (except one forged) were procured by undue influence and must be set aside, and that alleged gifts for the benefit of the defendants' family were not valid. The counterclaims for debts allegedly owed by the deceased were fabricated and dismissed. The estate is entitled to repayment of loans and unpaid dividends with interest.

Court Disposition

Judgment for the claimants.

Orders

  • Repayment of £150,000 loaned for Craig's home and £1,000,000 loaned to Lantern at 8.5% interest to the estate.
  • Dividend waivers set aside for undue influence; unpaid dividends to be paid to the estate with interest.