Reid v. Lord Ruthven [1918] ScotLR 616 (29 May 1918)

Reid v. Lord Ruthven [1918] ScotLR 616 (29 May 1918)

The pursuer's guarantee covered the defender's indebtedness as guarantor for a third party; the pursuer, having paid the bank the sum due by the defender, was entitled to recover that sum from the defender, and the bank's assignation of its rights to the pursuer was valid and effective.

Citation
[1918] ScotLR 616
Parties
Pursuer: James Reid of Tyneholm, Pencaitland; Defender: Walter James Hore Ruthven, Baron Ruthven
Jurisdiction
Scotland
Judgment Date
29 May 1918
Procedural Posture
Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division
Outcome
appeal dismissed; decree granted for pursuer as concluded for
Legal Topics
Cautioner Liability, Guarantee Construction, Right of Relief, Assignment of Debt, Payment by Third Party
Contract Law Banking Law Suretyship Cautioner Liability Guarantee Construction Right of Relief Assignment of Debt Payment by Third Party

Case Brief

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Parties

James Reid of Tyneholm, Pencaitland

Pursuer

Walter James Hore Ruthven, Baron Ruthven

Defender

Procedural Posture

Civil / Appeal (reclaiming Motion) From Lord Ordinary to Inner House, First Division

Legal Issues

  1. 1 Whether the pursuer's guarantee covered the defender's indebtedness as guarantor for a third party
  2. 2 Whether the pursuer, having paid the bank, was entitled to recover from the defender
  3. 3 Whether the bank could assign its rights against the defender to the pursuer without the defender's consent

Ratio Decidendi

The pursuer's guarantee covered the defender's indebtedness as guarantor for a third party; the pursuer, having paid the bank the sum due by the defender, was entitled to recover that sum from the defender, and the bank's assignation of its rights to the pursuer was valid and effective.

Court Disposition

appeal dismissed; decree granted for pursuer as concluded for

Orders

  • Decree for payment of £2704, 13s. 1d. with interest from 5 May 1916 at the rate charged by banks on unsecured overdrafts
  • Affirmation of Lord Ordinary's interlocutor