OPINION OF LORD TYRE IN THE CAUSE JOHN WILLIAM SUTHERLAND AGAINST BANK OF SCOTLAND PLC [2014] ScotCS CSOH_113 (11 July 2014)

OPINION OF LORD TYRE IN THE CAUSE JOHN WILLIAM SUTHERLAND AGAINST BANK OF SCOTLAND PLC [2014] ScotCS CSOH_113 (11 July 2014)

No agreement, misrepresentation, or assurance was made by the defenders or their employee to provide working capital overdraft facilities of up to £2 million. The pursuer failed to prove any contractual commitment, inducement by misrepresentation, or negligent assurance. The personal guarantee is enforceable and the pursuer is not entitled to reduction or damages.

Citation
[2014] ScotCS CSOH_113
Parties
Pursuer: John William Sutherland; Defender: Bank of Scotland PLC
Jurisdiction
Scotland
Judgment Date
11 July 2014
Procedural Posture
Commercial Action / Proof Before Answer
Outcome
Action dismissed
Legal Topics
Personal Guarantee Enforcement, Mutuality of Contract, Misrepresentation, Vicarious Liability, Damages
Contract Law Banking Law Guarantee Law Personal Guarantee Enforcement Mutuality of Contract Misrepresentation Vicarious Liability Damages

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Parties

John William Sutherland

Pursuer

Bank of Scotland PLC

Defender

Procedural Posture

Commercial Action / Proof Before Answer

Legal Issues

  1. 1 Whether Bank of Scotland PLC was contractually bound to provide working capital overdraft facilities to CBL as alleged by the pursuer
  2. 2 Whether the pursuer was induced to sign the personal guarantee by misrepresentation
  3. 3 Whether the defenders are vicariously liable for alleged negligent assurances by their employee

Ratio Decidendi

No agreement, misrepresentation, or assurance was made by the defenders or their employee to provide working capital overdraft facilities of up to £2 million. The pursuer failed to prove any contractual commitment, inducement by misrepresentation, or negligent assurance. The personal guarantee is enforceable and the pursuer is not entitled to reduction or damages.

Court Disposition

Action dismissed

Orders

  • No reduction of guarantee
  • No damages awarded