Buchanan v. Main [1900] ScotLR 38_104 (30 November 1900)

Buchanan v. Main [1900] ScotLR 38_104 (30 November 1900)

The bank was not bound to apply the call funds to the guaranteed account, as the account was closed and the funds were not intended for that purpose. The defender, as one of three solvent co-guarantors, is liable to contribute one-third of the sum paid by the pursuers under the guarantee.

Citation
[1900] ScotLR 38_104
Parties
Pursuer: Andrew Buchanan; Pursuer: William Stevenson Brown; Defender: John Main
Jurisdiction
Scotland
Judgment Date
30 November 1900
Procedural Posture
Civil / Appeal From Sheriff Substitute to Inner House, Second Division
Outcome
appeal allowed; interlocutor of Sheriff-Substitute recalled; decree for pursuers as concluded for
Legal Topics
Guarantee, Appropriation of Payments, Joint and Several Liability, Contribution Among Co Guarantors, Bank Overdraft, Liquidation
Banking Law Contract Law Company Law Guarantee Appropriation of Payments Joint and Several Liability Contribution Among Co Guarantors Bank Overdraft +1 more

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Parties

Andrew Buchanan

Pursuer

William Stevenson Brown

Pursuer

John Main

Defender

Procedural Posture

Civil / Appeal From Sheriff Substitute to Inner House, Second Division

Legal Issues

  1. 1 Whether the bank was bound to apply funds received from a call on shareholders to the guaranteed account's debit balance
  2. 2 Whether the defender was liable for one-third or one-fifth of the sum paid by the pursuers under the guarantee

Ratio Decidendi

The bank was not bound to apply the call funds to the guaranteed account, as the account was closed and the funds were not intended for that purpose. The defender, as one of three solvent co-guarantors, is liable to contribute one-third of the sum paid by the pursuers under the guarantee.

Court Disposition

appeal allowed; interlocutor of Sheriff-Substitute recalled; decree for pursuers as concluded for

Orders

  • Recall the interlocutor of the Sheriff-Substitute of 21st May 1900
  • Decern against the defender for payment to the pursuers of one-third of the sums paid by them to the bank under the guarantee, with interest from the respective dates of payment