Close Brothers Ltd v Pearce [2011] EWHC 298 (QB) (18 February 2011)
The defendant made it sufficiently clear in the 10 October 2006 conversation that his guarantees would not cover future loans, and the bank assented. The subsequent conduct of both parties, including the absence of the defendant as guarantor in post-2006 loan documentation, corroborates this. Therefore, the guarantees were revoked for future loans, and the bank's claim fails.
- Citation
- [2011] EWHC 298
- Parties
- Claimant: Close Brothers Limited; Defendant: Michael Roy Pearce
- Jurisdiction
- England and Wales
- Judgment Date
- 18 February 2011
- Procedural Posture
- Commercial Claim on Personal Guarantees / High Court Trial, Final Judgment
- Outcome
- Claim dismissed
- Legal Topics
- Personal Guarantees, Revocation of Guarantee, Construction of Guarantee Instruments
Case Brief
Summary, issues, holding and outcome
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Parties
Close Brothers Limited
Claimant
Michael Roy Pearce
Defendant
Procedural Posture
Commercial Claim on Personal Guarantees / High Court Trial, Final Judgment
Legal Issues
- 1 Whether the defendant effectively revoked his personal guarantees for future loans in a telephone conversation on 10 October 2006
- 2 Whether the 2005 guarantee covered the loan made to ATL and ATI in April 2008
Ratio Decidendi
The defendant made it sufficiently clear in the 10 October 2006 conversation that his guarantees would not cover future loans, and the bank assented. The subsequent conduct of both parties, including the absence of the defendant as guarantor in post-2006 loan documentation, corroborates this. Therefore, the guarantees were revoked for future loans, and the bank's claim fails.
Court Disposition
Claim dismissed
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