3D GARAGES Ltd AGAINST PROLATIS COMPANY Ltd [2016] ScotSC 70 (25 October 2016)

3D GARAGES Ltd AGAINST PROLATIS COMPANY Ltd [2016] ScotSC 70 (25 October 2016)

There is no statutory or common law requirement that the grantee of a standard security must be the creditor in the principal obligation; the standard securities granted in favour of the respondents as security trustee are valid and enforceable under the 1970 Act and the settlement agreement; the appeal is refused.

Citation
[2016] ScotSC 70
Parties
Pursuer and Appellant: 3D Garages Limited; Defender and Respondent: Prolatis Company Limited
Jurisdiction
Scotland
Judgment Date
25 October 2016
Procedural Posture
Appeal / Judgment on Appeal
Outcome
appeal refused
Legal Topics
Standard Securities, Heritable Security, Trustee Enforcement, Assignation, Settlement Agreement
Property Law Commercial Law Standard Securities Heritable Security Trustee Enforcement Assignation Settlement Agreement

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Parties

3D Garages Limited

Pursuer and Appellant

Prolatis Company Limited

Defender and Respondent

Procedural Posture

Appeal / Judgment on Appeal

Legal Issues

  1. 1 Whether a standard security is void and unenforceable if granted in favour of a party who is not the creditor in the principal obligation
  2. 2 Whether the settlement agreement constitutes the respondents as trustees, assignees, or representatives for enforcement of the debt
  3. 3 Whether the statutory requirements for standard securities under the Conveyancing and Feudal Reform (Scotland) Act 1970 are satisfied

Ratio Decidendi

There is no statutory or common law requirement that the grantee of a standard security must be the creditor in the principal obligation; the standard securities granted in favour of the respondents as security trustee are valid and enforceable under the 1970 Act and the settlement agreement; the appeal is refused.

Court Disposition

appeal refused

Orders

  • Adheres to the sheriff's interlocutor of 27 May 2015
  • Appoints the cause to a procedural hearing to consider further procedure and all questions of expenses