Doig v. Lawrie [1903] ScotLR 40_247 (07 January 1903)

Doig v. Lawrie [1903] ScotLR 40_247 (07 January 1903)

The letter of guarantee implied a right for the cautioner to terminate the guarantee at any time upon reasonable notice. Reasonable notice having been given and time allowed for the principal debtor to arrange relief, the pursuer was entitled to be freed and relieved of all liability under the guarantee, and the defender was ordered to procure a discharge from the bank.

Citation
[1903] ScotLR 40_247
Parties
Pursuer: James Keiller Doig; Defender: Alexander Douglas Lawrie; Defender (for Interest): Sinclair Gunn MacDonald
Jurisdiction
Scotland
Judgment Date
07 January 1903
Procedural Posture
Action of Relief (cautioner/guarantor) / Inner House, First Division, Reclaiming Motion (appeal)
Outcome
Appeal dismissed; judgment for pursuer affirmed.
Legal Topics
Guarantee, Cautioner, Relief of Cautioner, Termination of Guarantee, Continuing Guarantee
Contract Law Banking Law Suretyship Guarantee Cautioner Relief of Cautioner Termination of Guarantee Continuing Guarantee

Case Brief

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Parties

James Keiller Doig

Pursuer

Alexander Douglas Lawrie

Defender

Sinclair Gunn MacDonald

Defender (for Interest)

Procedural Posture

Action of Relief (cautioner/guarantor) / Inner House, First Division, Reclaiming Motion (appeal)

Legal Issues

  1. 1 Whether a cautioner under a continuing guarantee may obtain relief from the principal debtor before payment or demand by the creditor.
  2. 2 Whether the guarantee could be terminated by the cautioner upon reasonable notice.

Ratio Decidendi

The letter of guarantee implied a right for the cautioner to terminate the guarantee at any time upon reasonable notice. Reasonable notice having been given and time allowed for the principal debtor to arrange relief, the pursuer was entitled to be freed and relieved of all liability under the guarantee, and the defender was ordered to procure a discharge from the bank.

Court Disposition

Appeal dismissed; judgment for pursuer affirmed.

Orders

  • Defender to free and relieve the pursuer by paying all sums due under the guarantee.
  • Defender to obtain and deliver to the pursuer a discharge by the bank of all obligations under the guarantee.