PETITION BY UK AGRICULTURAL LENDING LTD AGAINST HAMILTON ORR LTD AND OTHERS FOR RECTIFICATION OF DOCUMENTS [2021] ScotCS CSIH_70 (17 December 2021)

PETITION BY UK AGRICULTURAL LENDING LTD AGAINST HAMILTON ORR LTD AND OTHERS FOR RECTIFICATION OF DOCUMENTS [2021] ScotCS CSIH_70 (17 December 2021)

The evidence, including the affidavit of the drafting solicitor, overwhelmingly demonstrated that the parties intended the loan to be made to Orrdone Farms and not Hamilton Orr. The standard securities were erroneously drafted and did not reflect the parties' intentions. No substantial basis was presented for interfering with the Lord Ordinary's findings. The reclaiming motion is refused.

Citation
[2021] ScotCS CSIH_70
Parties
Petitioner: UK Agricultural Lending Limited; First Respondent and Reclaimer: Hamilton Orr Limited; Second Respondent: Orrdone Farms Limited (in administration); Third Respondent and Reclaimer: Martin Frost; Fourth Respondent and Reclaimer: Janet Frost
Jurisdiction
Scotland
Judgment Date
17 December 2021
Procedural Posture
Petition for Rectification of Documents / Appeal (reclaiming Motion) From Lord Ordinary's Decision
Outcome
Reclaiming motion refused; rectification order affirmed.
Legal Topics
Rectification of Documents, Standard Securities, Loan Agreements, Guarantor Liability
Property Law Commercial Law Rectification of Documents Standard Securities Loan Agreements Guarantor Liability

Case Brief

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Parties

UK Agricultural Lending Limited

Petitioner

Hamilton Orr Limited

First Respondent and Reclaimer

Orrdone Farms Limited (in administration)

Second Respondent

Martin Frost

Third Respondent and Reclaimer

Janet Frost

Fourth Respondent and Reclaimer

Procedural Posture

Petition for Rectification of Documents / Appeal (reclaiming Motion) From Lord Ordinary's Decision

Legal Issues

  1. 1 Whether standard securities accurately reflected the parties' intentions at execution
  2. 2 Whether rectification under section 8(1)(a) of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985 was appropriate
  3. 3 Whether respondents had title and interest to resist the petition

Ratio Decidendi

The evidence, including the affidavit of the drafting solicitor, overwhelmingly demonstrated that the parties intended the loan to be made to Orrdone Farms and not Hamilton Orr. The standard securities were erroneously drafted and did not reflect the parties' intentions. No substantial basis was presented for interfering with the Lord Ordinary's findings. The reclaiming motion is refused.

Court Disposition

Reclaiming motion refused; rectification order affirmed.

Orders

  • Rectification of standard securities to reflect Orrdone Farms as debtor affirmed.
  • No proof allowed; respondents' motion refused.