7 May 2009
WING HANG BANK LTD v. KWOK LAI SIM AND ANOTHER
- Citation
- WING HANG BANK LTD v. KWOK LAI SIM AND ANOTHER
- Court
- Court of Appeal
- Case number
- CACV96/2008
The Court of Appeal held that the bank had constructive notice of the brother's misrepresentation because the solicitors' confirmations were insufficient: the solicitors failed to comply with Etridge (No.2) and the Law Society Guidelines (no proper private face-to-face meeting, inadequate attendance note/written confirmation, failure to disclose relevant financial information); accordingly the legal charge was rescinded, the bank's claim dismissed, and the solicitors (3rd party) declared liable to indemnify the sisters against any claim by the bank.