Paragon Mortgages Ltd v McEwan-Peters & Anor

Paragon Mortgages Ltd v McEwan-Peters & Anor

No clear and unequivocal assurance was given by Paragon to forbear enforcement until arrears exceeded three months; no reliance or detriment was established; all advances were secured and guaranteed; the guarantees were not discharged by property transfers due to anti-release clauses; the relationship was not unfair; and the on-demand clause was binding and enforceable.

Parties
Claimant: Paragon Mortgages Limited; Defendant: Robert McEwan-Peters; Defendant: Rachel Frances McEwan-Peters
Jurisdiction
England and Wales
Judgment Date
05 October 2011
Procedural Posture
Civil (commercial/mortgage Enforcement) / Judgment After Trial
Outcome
Claim allowed; counterclaim dismissed
Legal Topics
Mortgage Enforcement, Guarantees, Promissory Estoppel, Unfair Relationship Under Consumer Credit Act, Release of Surety, Further Advances, On Demand Clauses
Contract Law Banking and Finance Law Equity Mortgage Enforcement Guarantees Promissory Estoppel Unfair Relationship Under Consumer Credit Act Release of Surety +2 more

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Parties

Paragon Mortgages Limited

Claimant

Robert McEwan-Peters

Defendant

Rachel Frances McEwan-Peters

Defendant

Procedural Posture

Civil (commercial/mortgage Enforcement) / Judgment After Trial

Legal Issues

  1. 1 Whether Paragon was estopped from enforcing its rights under the mortgages and guarantees unless arrears exceeded three months
  2. 2 Whether further advances were secured and guaranteed
  3. 3 Whether the transfer of properties discharged the guarantees

Ratio Decidendi

No clear and unequivocal assurance was given by Paragon to forbear enforcement until arrears exceeded three months; no reliance or detriment was established; all advances were secured and guaranteed; the guarantees were not discharged by property transfers due to anti-release clauses; the relationship was not unfair; and the on-demand clause was binding and enforceable.

Court Disposition

Claim allowed; counterclaim dismissed

Orders

  • Judgment for Paragon Mortgages Limited for the sums claimed under the guarantees and mortgages
  • Counterclaim by Robert McEwan-Peters dismissed