Lloyds TSB Bank Plc v Hayward

Lloyds TSB Bank Plc v Hayward

The defendant's guarantees were discharged because the Bank and Club varied the facility terms after the 23rd September 1994 meeting, imposing new obligations without the defendant's consent, thereby triggering the rule in Holme v Brunskill and releasing the defendant from liability.

Parties
Claimant: Lloyds TSB Bank plc; Defendant: Norman Hayward
Jurisdiction
England and Wales
Judgment Date
23 July 2004
Procedural Posture
Civil / Judgment After Re Trial
Outcome
claim dismissed
Legal Topics
Variation of Contract, Guarantee Discharge, Holme V Brunskill Rule, Oral Agreements, Facility Letter Interpretation
Contract Law Banking Law Guarantee Law Variation of Contract Guarantee Discharge Holme V Brunskill Rule Oral Agreements Facility Letter Interpretation

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Parties

Lloyds TSB Bank plc

Claimant

Norman Hayward

Defendant

Procedural Posture

Civil / Judgment After Re Trial

Legal Issues

  1. 1 Whether an oral agreement at the 23rd September 1994 meeting varied the Facility Letter terms
  2. 2 Whether subsequent variation discharged the defendant from guarantee liability under Holme v Brunskill
  3. 3 Whether the Gardiner Side Letter imposed new obligations without the defendant's consent

Ratio Decidendi

The defendant's guarantees were discharged because the Bank and Club varied the facility terms after the 23rd September 1994 meeting, imposing new obligations without the defendant's consent, thereby triggering the rule in Holme v Brunskill and releasing the defendant from liability.

Court Disposition

claim dismissed