Folgender Holdings Ltd & Anor v Letraz Properties Ltd & Ors

Folgender Holdings Ltd & Anor v Letraz Properties Ltd & Ors

The claimants are contractually entitled to specific performance for the grant of a registrable second charge over Chesterfield Hill, an injunction to prevent Letraz and Arbomo from frustrating this right, and disclosure of information and accounts relating to the developments. The defendants' late attempt to amend their defence was refused due to lack of explanation and prejudice to the claimants. The court found no valid equitable or contractual bar to granting the relief sought.

Parties
Claimant: Folgendar Holdings Limited; Claimant: Elbogross SA; Defendant: Letraz Properties Limited; Defendant: Arbomo Financial Limited; Defendant: Mercantile Estate Holdings Limited; Defendant: Mr Salah Mussa
Jurisdiction
England and Wales
Judgment Date
06 August 2019
Procedural Posture
Civil (commercial/property) / Summary Judgment Application and Strike Out
Outcome
Summary judgment for claimants; partial strike out of defence; orders for specific performance, injunction, and provision of information/accounts granted.
Legal Topics
Specific Performance, Injunctions, Summary Judgment, Strike Out, Mortgages and Charges, Disclosure of Information, Account of Profits
Contract Law Property Law Equity Specific Performance Injunctions Summary Judgment Strike Out Mortgages and Charges +2 more

Case Brief

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Parties

Folgendar Holdings Limited

Claimant

Elbogross SA

Claimant

Letraz Properties Limited

Defendant

Arbomo Financial Limited

Defendant

Mercantile Estate Holdings Limited

Defendant

Mr Salah Mussa

Defendant

Procedural Posture

Civil (commercial/property) / Summary Judgment Application and Strike Out

Legal Issues

  1. 1 Whether the claimants are entitled to specific performance of a contractual obligation to provide a registrable second charge over property
  2. 2 Whether an injunction should be granted to prevent interference with the grant of security
  3. 3 Whether the claimants are entitled to information and accounts regarding property development profits

Ratio Decidendi

The claimants are contractually entitled to specific performance for the grant of a registrable second charge over Chesterfield Hill, an injunction to prevent Letraz and Arbomo from frustrating this right, and disclosure of information and accounts relating to the developments. The defendants' late attempt to amend their defence was refused due to lack of explanation and prejudice to the claimants. The court found no valid equitable or contractual bar to granting the relief sought.

Court Disposition

Summary judgment for claimants; partial strike out of defence; orders for specific performance, injunction, and provision of information/accounts granted.

Orders

  • Letraz to procure execution of a registrable second charge over Chesterfield Hill in favour of the claimants, with priority limited to the amount of the first charge as at the date of the loan agreement (£7.5 million).
  • Injunction (or undertaking) restraining Letraz and Arbomo from taking steps to frustrate the grant and registration of the second charge.