Close Brothers Ltd v Pearce [2011] EWHC 298 (QB) (18 February 2011)

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 existing guarantees would not cover future loans, amounting to a revocation, and the bank assented. The subsequent conduct of both parties was consistent with this revocation. Therefore, the claim on the guarantees fails.

Citation
[2011] EWHC 298 (QB)
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
Banking and Finance Law Contract Law Personal Guarantees Revocation of Guarantee Construction of Guarantee Instruments

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 4 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Close Brothers Limited

Claimant

Michael Roy Pearce

Defendant

Procedural Posture

Commercial Claim on Personal Guarantees / High Court Trial, Final Judgment

Legal Issues

  1. 1 Whether the defendant's personal guarantees were revoked in respect of future borrowing during a telephone conversation on 10 October 2006
  2. 2 Whether the 2005 guarantee covered the loan made to ATL and Air Touring Inc (ATI)

Ratio Decidendi

The defendant made it sufficiently clear in the 10 October 2006 conversation that his existing guarantees would not cover future loans, amounting to a revocation, and the bank assented. The subsequent conduct of both parties was consistent with this revocation. Therefore, the claim on the guarantees fails.

Court Disposition

Claim dismissed