Bedford Investments Ltd v Sellman

Bedford Investments Ltd v Sellman

The claimant is entitled to summary judgment on the guarantee as the assignments were valid and notice was adequate; the no set-off clause is enforceable and there are no exceptional circumstances to displace it; the standard rate interest clause is arguably a penalty and that issue must go to trial, but otherwise the claimant is entitled to capital and interest at the concessionary rate; the guarantee interest rate is to be construed as 3% per month; there is no merit in the estoppel or onerous term defences; and no other compelling reason exists to refuse summary judgment.

Parties
Claimant: Bedford Investments Limited; Defendant: Mr Nicholas James Sellman; Part 20 Defendant: Mr Guillaume De la Gorce
Jurisdiction
England and Wales
Judgment Date
31 March 2021
Procedural Posture
Commercial Claim (summary Judgment Application) / High Court Judgment on Summary Judgment Application
Outcome
Summary judgment granted in part for the claimant; trial required on penalty interest issue.
Legal Topics
Guarantee Enforcement, Assignment of Debt, Penalty Clauses, No Set Off Clauses, Interest Rate Construction, Estoppel, Onerous Terms
Contract Law Commercial Law Banking and Finance Guarantee Enforcement Assignment of Debt Penalty Clauses No Set Off Clauses Interest Rate Construction +2 more

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 5 Authorities cited 29 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Bedford Investments Limited

Claimant

Mr Nicholas James Sellman

Defendant

Mr Guillaume De la Gorce

Part 20 Defendant

Procedural Posture

Commercial Claim (summary Judgment Application) / High Court Judgment on Summary Judgment Application

Legal Issues

  1. 1 Whether the claimant has a valid chain of assignments to enforce the guarantee
  2. 2 Whether the defendant can rely on set-off or counterclaim to defeat summary judgment
  3. 3 Whether the standard rate interest clause is an unenforceable penalty

Ratio Decidendi

The claimant is entitled to summary judgment on the guarantee as the assignments were valid and notice was adequate; the no set-off clause is enforceable and there are no exceptional circumstances to displace it; the standard rate interest clause is arguably a penalty and that issue must go to trial, but otherwise the claimant is entitled to capital and interest at the concessionary rate; the guarantee interest rate is to be construed as 3% per month; there is no merit in the estoppel or onerous term defences; and no other compelling reason exists to refuse summary judgment.

Court Disposition

Summary judgment granted in part for the claimant; trial required on penalty interest issue.

Orders

  • Claimant entitled to summary judgment for capital and interest at the concessionary rate under the loan.
  • Claimant entitled to interest under the guarantee at 3% per month from 23 February 2018.