Blacha v The Bank Of Scotland Plc [2008] ScotCS CSOH_173 (12 December 2008)

Blacha v The Bank Of Scotland Plc [2008] ScotCS CSOH_173 (12 December 2008)

The authority conferred by the facility letter was sufficient to permit the bank to debit the pursuer's account, including the £350,000 credit balance, for the purchase of traded endowment policies. The pursuer's pleadings did not disclose a relevant challenge to the bank's authority or to the appointment of Davis Blank Furniss as legal advisors. Accordingly, the action was irrelevant and fell to be dismissed.

Citation
[2008] ScotCS CSOH_173
Parties
Pursuer: Stefan Blacha; Defender: The Bank of Scotland Plc
Jurisdiction
Scotland
Judgment Date
12 December 2008
Procedural Posture
Civil / Plea to Relevancy (motion to Dismiss)
Outcome
Action dismissed
Legal Topics
Mandate and Authority of Banks, Loan Facility Agreements, Remittance of Funds, Agency
Banking Law Contract Law Mandate and Authority of Banks Loan Facility Agreements Remittance of Funds Agency

Case Brief

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Parties

Stefan Blacha

Pursuer

The Bank of Scotland Plc

Defender

Procedural Posture

Civil / Plea to Relevancy (motion to Dismiss)

Legal Issues

  1. 1 Whether the bank had authority to debit £350,000 from the pursuer's account under the facility agreement
  2. 2 Whether Davis Blank Furniss were properly authorised as legal advisors for the purposes of the facility agreement
  3. 3 Whether the pursuer's pleadings put the defenders to proof regarding authority and remittance of funds

Ratio Decidendi

The authority conferred by the facility letter was sufficient to permit the bank to debit the pursuer's account, including the £350,000 credit balance, for the purchase of traded endowment policies. The pursuer's pleadings did not disclose a relevant challenge to the bank's authority or to the appointment of Davis Blank Furniss as legal advisors. Accordingly, the action was irrelevant and fell to be dismissed.

Court Disposition

Action dismissed

Orders

  • Sustain the defenders' first plea in law
  • Dismiss the action