ALISON DONNELLY AGAINST THE ROYAL BANK OF SCOTLAND PLC [2016] ScotSC 13 (23 February 2016)

ALISON DONNELLY AGAINST THE ROYAL BANK OF SCOTLAND PLC [2016] ScotSC 13 (23 February 2016)

The defender is entitled to plead set-off because both the pursuer's PPI claim and the defender's loan claim have their source in obligations existing prior to the pursuer's insolvency; the discharge from the trust deed did not extinguish the pursuer's obligations; prescription was interrupted by the submission of claims in the trust deed; and the PPI claim forms part of the insolvent estate, allowing set-off by the principle of balancing of accounts in bankruptcy.

Citation
[2016] ScotSC 13
Parties
Pursuer: Alison Donnelly; Defender: The Royal Bank of Scotland plc
Jurisdiction
Scotland
Judgment Date
23 February 2016
Procedural Posture
Commercial Action / Judgment on Relevancy and Further Procedure
Outcome
Defender's fifth plea-in-law repelled; defender's first plea-in-law sustained in part; pursuer's first and fifth pleas-in-law repelled; issue of expenses reserved; case assigned for case management conference.
Legal Topics
Set Off in Insolvency, Effect of Discharge From Trust Deed, Prescription of Debts, Mis Selling of Payment Protection Insurance (ppi), Classification of Contingent Obligations
Insolvency Law Contract Law Banking Law Set Off in Insolvency Effect of Discharge From Trust Deed Prescription of Debts Mis Selling of Payment Protection Insurance (ppi) Classification of Contingent Obligations

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 27 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Alison Donnelly

Pursuer

The Royal Bank of Scotland plc

Defender

Procedural Posture

Commercial Action / Judgment on Relevancy and Further Procedure

Legal Issues

  1. 1 Whether the defender is entitled to set-off sums due under PPI agreements against pre-insolvency loan debts
  2. 2 Whether the pursuer's discharge from the trust deed extinguished her liability to the defender
  3. 3 Whether the pursuer's loan obligations were extinguished by prescription

Ratio Decidendi

The defender is entitled to plead set-off because both the pursuer's PPI claim and the defender's loan claim have their source in obligations existing prior to the pursuer's insolvency; the discharge from the trust deed did not extinguish the pursuer's obligations; prescription was interrupted by the submission of claims in the trust deed; and the PPI claim forms part of the insolvent estate, allowing set-off by the principle of balancing of accounts in bankruptcy.

Court Disposition

Defender's fifth plea-in-law repelled; defender's first plea-in-law sustained in part; pursuer's first and fifth pleas-in-law repelled; issue of expenses reserved; case assigned for case management conference.

Orders

  • Repels defender’s fifth plea-in-law due to want of insistence
  • Sustains in part defender’s first plea-in-law