Close Brothers Ltd v Pearce

Close Brothers Ltd v Pearce

The evidence, including contemporaneous documentation and subsequent practice, supports Mr Pearce's assertion that the guarantees were revoked for future loans during the conversation on 10 October 2006, and the Bank assented to this revocation. Therefore, the claim under both guarantees fails.

Parties
Claimant: Close Brothers Limited; Defendant: Michael Roy Pearce
Jurisdiction
England and Wales
Judgment Date
18 February 2011
Procedural Posture
Civil / Judgment
Outcome
Claim dismissed
Legal Topics
Guarantees, Revocation of Guarantee, Loan Agreements, Personal Liability
Contract Law Banking Law Guarantees Revocation of Guarantee Loan Agreements Personal Liability

Case Brief

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Parties

Close Brothers Limited

Claimant

Michael Roy Pearce

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether the personal guarantees given by Mr Pearce were revoked in respect of future borrowing during a telephone conversation on 10 October 2006
  2. 2 Whether the loan fell outside the scope of the 2005 guarantee due to the change in Delaware trust companies

Ratio Decidendi

The evidence, including contemporaneous documentation and subsequent practice, supports Mr Pearce's assertion that the guarantees were revoked for future loans during the conversation on 10 October 2006, and the Bank assented to this revocation. Therefore, the claim under both guarantees fails.

Court Disposition

Claim dismissed