PROMONTORIA (CHESTNUT) Ltd AGAINST THE FIRM OF BALLANTYNE PROPERTY SERVICES, GILLIAN BALLANTYNE SMITH AND THOMAS ALLAN SMITH [2016] ScotSC 74 (03 November 2016)

PROMONTORIA (CHESTNUT) Ltd AGAINST THE FIRM OF BALLANTYNE PROPERTY SERVICES, GILLIAN BALLANTYNE SMITH AND THOMAS ALLAN SMITH [2016] ScotSC 74 (03 November 2016)

The defenders failed to aver clear and unambiguous words amounting to a legally binding promise by the bank to extend the loan facilities or not enforce the securities; thus, no relevant defence was stated and decree was granted for the pursuer.

Citation
[2016] ScotSC 74
Parties
Pursuer: PROMONTORIA (CHESTNUT) LIMITED; First Defender: THE FIRM OF BALLANTYNE PROPERTY SERVICES; Second Defender: GILLIAN BALLANTYNE SMITH; Third Defender: THOMAS ALLAN SMITH
Jurisdiction
Scotland
Judgment Date
03 November 2016
Procedural Posture
Summary Application Under the Conveyancing and Feudal Reform (scotland) Act 1970 / Judgment After Hearing on Relevancy of Defences
Outcome
Decree granted in favour of the pursuer with expenses.
Legal Topics
Enforcement of Standard Securities, Calling Up Procedure, Unilateral Promise in Scots Law, Commercial Lending, Summary Application Procedure
Property Law Banking and Finance Law Civil Procedure Enforcement of Standard Securities Calling Up Procedure Unilateral Promise in Scots Law Commercial Lending Summary Application Procedure

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Parties

PROMONTORIA (CHESTNUT) LIMITED

Pursuer

THE FIRM OF BALLANTYNE PROPERTY SERVICES

First Defender

GILLIAN BALLANTYNE SMITH

Second Defender

THOMAS ALLAN SMITH

Third Defender

Procedural Posture

Summary Application Under the Conveyancing and Feudal Reform (scotland) Act 1970 / Judgment After Hearing on Relevancy of Defences

Legal Issues

  1. 1 Whether the defenders have stated a relevant defence based on an alleged promise by the bank to extend loan facilities and not enforce securities
  2. 2 Whether the words allegedly used by the bank's representative amount to a legally binding promise in Scots law

Ratio Decidendi

The defenders failed to aver clear and unambiguous words amounting to a legally binding promise by the bank to extend the loan facilities or not enforce the securities; thus, no relevant defence was stated and decree was granted for the pursuer.

Court Disposition

Decree granted in favour of the pursuer with expenses.

Orders

  • Decree for payment of the outstanding debt and enforcement of securities.
  • Award of expenses to the pursuer.