Promontoria (Chestnut) Ltd v Simpson & Anor

Promontoria (Chestnut) Ltd v Simpson & Anor

The guarantees executed by the defendants covered all liabilities of the customer to the bank, including those arising under the March 2013 facility as renewed or extended by the July 2013 letter. The deed of assignment effectively assigned the bank's rights under the facility and guarantees to the claimant. The defendants are liable under the guarantees for the amount claimed.

Parties
Claimant: Promontoria (Chestnut) Limited; Defendant: Scott Simpson; Defendant: Tracy Simpson
Jurisdiction
England and Wales
Judgment Date
23 July 2020
Procedural Posture
Commercial Claim / Judgment After Trial
Outcome
judgment for claimant
Legal Topics
Guarantees, Assignment of Debt, Indemnity Costs
Contract Law Banking Law Guarantees Assignment of Debt Indemnity Costs

Case Brief

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Parties

Promontoria (Chestnut) Limited

Claimant

Scott Simpson

Defendant

Tracy Simpson

Defendant

Procedural Posture

Commercial Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the deed of assignment effectively assigned the relevant facility and guarantees to the claimant
  2. 2 Whether the guarantees cover the liability claimed
  3. 3 Whether the July 2013 facility letter was a renewal or extension of the March 2013 facility

Ratio Decidendi

The guarantees executed by the defendants covered all liabilities of the customer to the bank, including those arising under the March 2013 facility as renewed or extended by the July 2013 letter. The deed of assignment effectively assigned the bank's rights under the facility and guarantees to the claimant. The defendants are liable under the guarantees for the amount claimed.

Court Disposition

judgment for claimant

Orders

  • Defendants to pay claimant £415,075.12 inclusive of interest
  • Defendants to pay claimant's costs on an indemnity basis under the guarantee and Civil Procedure Rules Part 44.5