THE ROYAL BANK OF SCOTLAND PUBLIC LTD COMPANY AGAINST (FIRST) ALISON DONNELLY AND ANOTHER [2020] ScotCS CSOH_106 (16 December 2020)

THE ROYAL BANK OF SCOTLAND PUBLIC LTD COMPANY AGAINST (FIRST) ALISON DONNELLY AND ANOTHER [2020] ScotCS CSOH_106 (16 December 2020)

The pursuer has title to sue as successor to RBS under the ring-fenced transfer scheme; the debtor's trust deed was not assigned to Max Recovery Limited; Group acted as agent for RBS in settling the PPI claim. Error or ignorance is a relevant ground for reduction of the debtor's discharge, and reduction is competent and equitable in the circumstances. There is consursus debiti et crediti enabling set-off. The pursuer is not precluded by personal bar, waiver, or mora, taciturnity and acquiescence.

Citation
[2020] ScotCS CSOH_106
Parties
Pursuer: The Royal Bank of Scotland Public Limited Company; First Defender: Mrs Alison Donnelly; Second Defender: Antonia McIntyre
Jurisdiction
Scotland
Judgment Date
16 December 2020
Procedural Posture
Commercial Action for Reduction / Judgment After Proof
Outcome
Reduction granted
Legal Topics
Protected Trust Deeds, Reduction, Set Off, Agency, Assignation, Personal Bar, Waiver, Mora, PPI Mis Selling
Insolvency Banking Trusts Contract Protected Trust Deeds Reduction Set Off Agency +5 more

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Parties

The Royal Bank of Scotland Public Limited Company

Pursuer

Mrs Alison Donnelly

First Defender

Antonia McIntyre

Second Defender

Procedural Posture

Commercial Action for Reduction / Judgment After Proof

Legal Issues

  1. 1 Whether the pursuer has title to sue for reduction of the debtor's discharge under the trust deed
  2. 2 Whether the debtor's discharge can be reduced on grounds of error or ignorance
  3. 3 Whether reduction is competent and equitable

Ratio Decidendi

The pursuer has title to sue as successor to RBS under the ring-fenced transfer scheme; the debtor's trust deed was not assigned to Max Recovery Limited; Group acted as agent for RBS in settling the PPI claim. Error or ignorance is a relevant ground for reduction of the debtor's discharge, and reduction is competent and equitable in the circumstances. There is consursus debiti et crediti enabling set-off. The pursuer is not precluded by personal bar, waiver, or mora, taciturnity and acquiescence.

Court Disposition

Reduction granted

Orders

  • Reduction of the debtor's discharge under the trust deed to the extent necessary to enable set-off of the admitted PPI liability against the unpaid balance
  • No reduction of the trustee's discharge