Commercial First Business Limited v Munday & Anor

Commercial First Business Limited v Munday & Anor

CFB is prevented by cause of action estoppel from relying on the Farm House charge as security for the Cottages loan in opposition to the suspension of the warrant of possession; the amount due is limited to the judgment obtained in the Farm House action, except for continuing interest. Estoppel by convention and collateral contract arguments failed on the evidence, but the collateral contract issue is remitted for determination.

Parties
Claimant/appellant: Commercial First Business Limited; Defendant/respondent: Jonathan Clive Munday; Defendant/respondent: Freda Rose Munday
Jurisdiction
England and Wales
Judgment Date
09 October 2014
Procedural Posture
Civil Appeal / Judgment on Second Appeal
Outcome
Appeal allowed in part; warrant of possession suspended; collateral contract issue remitted to County Court.
Legal Topics
Mortgage Enforcement, All Monies Charge, Estoppel, Collateral Contract, Cause of Action Estoppel, Abuse of Process
Property Law Contract Law Civil Procedure Mortgage Enforcement All Monies Charge Estoppel Collateral Contract Cause of Action Estoppel +1 more

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Parties

Commercial First Business Limited

Claimant/appellant

Jonathan Clive Munday

Defendant/respondent

Freda Rose Munday

Defendant/respondent

Procedural Posture

Civil Appeal / Judgment on Second Appeal

Legal Issues

  1. 1 Whether Commercial First Business Limited can rely on the all monies clause in the Farm House charge to recover the Cottages loan
  2. 2 Whether estoppel by convention or representation prevents CFB from enforcing its strict legal rights under the Farm House charge
  3. 3 Whether cause of action estoppel or abuse of process bars CFB from asserting the Farm House charge as security for the Cottages loan

Ratio Decidendi

CFB is prevented by cause of action estoppel from relying on the Farm House charge as security for the Cottages loan in opposition to the suspension of the warrant of possession; the amount due is limited to the judgment obtained in the Farm House action, except for continuing interest. Estoppel by convention and collateral contract arguments failed on the evidence, but the collateral contract issue is remitted for determination.

Court Disposition

Appeal allowed in part; warrant of possession suspended; collateral contract issue remitted to County Court.

Orders

  • Execution of the warrant of possession suspended until further order in County Court proceedings.
  • Collateral contract issue remitted for determination by County Court.