Helden v StratHMore Ltd

Helden v StratHMore Ltd

The lending to Mr Helden was carried on by way of business within the meaning of FSMA, and Strathmore was not authorised, so the agreements were unenforceable unless relief was granted. The court found it just and equitable to allow enforcement of the main loan and the £25,000 loan, but not the £91,509 agreement, considering the parties' conduct, the borrower's benefit, and the lender's reasonable belief regarding authorisation.

Parties
Claimant: Charles Cleland Helden; Defendant: Strathmore Limited
Jurisdiction
England and Wales
Judgment Date
30 July 2010
Procedural Posture
Civil / Judgment After Trial
Outcome
Partial enforcement granted under FSMA s.28(3)
Legal Topics
FSMA Compliance, Regulated Mortgage Contracts, Enforceability of Loan Agreements, Relief Under FSMA Section 28
Financial Services Law Contract Law Property Law FSMA Compliance Regulated Mortgage Contracts Enforceability of Loan Agreements Relief Under FSMA Section 28

Case Brief

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Parties

Charles Cleland Helden

Claimant

Strathmore Limited

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the loan agreement between Mr Helden and Strathmore Limited was unenforceable under the Financial Services and Markets Act 2000 (FSMA) due to lack of authorisation
  2. 2 Whether the lending was 'carried on by way of business' within the meaning of FSMA
  3. 3 Whether the court should grant relief under section 28(3) of FSMA to allow enforcement of the loan agreements

Ratio Decidendi

The lending to Mr Helden was carried on by way of business within the meaning of FSMA, and Strathmore was not authorised, so the agreements were unenforceable unless relief was granted. The court found it just and equitable to allow enforcement of the main loan and the £25,000 loan, but not the £91,509 agreement, considering the parties' conduct, the borrower's benefit, and the lender's reasonable belief regarding authorisation.

Court Disposition

Partial enforcement granted under FSMA s.28(3)

Orders

  • The agreement relating to the loan for the purchase of 58 Chelsea Crescent is enforceable, including interest and security.
  • The agreement relating to the £25,000 loan is enforceable.