Royal Bank of Scotland Invoice Discounting Ltd & Anor v Manuel

Royal Bank of Scotland Invoice Discounting Ltd & Anor v Manuel

There is a realistic prospect of Mr Manuel establishing a defence to the claim, particularly regarding the Bombardier debt, based on evidence that advances may have been repaid through discounts and stock arrangements, and that RBSID may not have acted reasonably in compromising the claim without proper investigation. The judgment in default is set aside to allow pleadings and disclosure.

Parties
Claimant: The Royal Bank of Scotland Invoice Discounting Limited; Claimant: RBS Invoice Finance Limited; Defendant: William Henry Manuel
Jurisdiction
England and Wales
Judgment Date
04 February 2011
Procedural Posture
Appeal / Judgment on Appeal Against Refusal to Set Aside Default Judgment
Outcome
judgment in default set aside
Legal Topics
Guarantees, Invoice Discounting, Breach of Warranty, Set Off, Damages, Mitigation of Loss
Commercial Law Contract Law Guarantees Invoice Discounting Breach of Warranty Set Off Damages Mitigation of Loss

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Parties

The Royal Bank of Scotland Invoice Discounting Limited

Claimant

RBS Invoice Finance Limited

Claimant

William Henry Manuel

Defendant

Procedural Posture

Appeal / Judgment on Appeal Against Refusal to Set Aside Default Judgment

Legal Issues

  1. 1 Whether Whiteley was in breach of warranty and undertaking in entering into the Right of Set Off Agreement with Bombardier
  2. 2 Whether Whiteley was in breach of warranty in notifying invoices for advance payments to RBSID
  3. 3 Whether RBSID acted reasonably in compromising a claim against Bombardier for less than the notified value of debts

Ratio Decidendi

There is a realistic prospect of Mr Manuel establishing a defence to the claim, particularly regarding the Bombardier debt, based on evidence that advances may have been repaid through discounts and stock arrangements, and that RBSID may not have acted reasonably in compromising the claim without proper investigation. The judgment in default is set aside to allow pleadings and disclosure.

Court Disposition

judgment in default set aside

Orders

  • Further directions for service of pleadings and disclosure
  • No condition imposed requiring payment of judgment sum into court