Ahmed (AP) v Clydesdale Bank Plc [2000] ScotCS 232 (18 August 2000)

Ahmed (AP) v Clydesdale Bank Plc [2000] ScotCS 232 (18 August 2000)

The pursuer's liability as cautioner for her husband's debts was constituted by the standard security executed in 1991, in circumstances not impugned and with legal advice. The alleged bad faith by the defenders in 1995 did not alter or worsen the pursuer's position, nor did it constitute a misrepresentation affecting the constitution of the obligation. Therefore, the pursuer has no relevant averments to support reduction of the standard security.

Citation
[2000] ScotCS 232
Parties
Pursuer: Mrs Kishwer Ahmed (AP); Defender: Clydesdale Bank plc
Jurisdiction
Scotland
Judgment Date
18 August 2000
Procedural Posture
Civil Action for Reduction / Debate on Relevancy, Judgment
Outcome
action dismissed
Legal Topics
Standard Security, Cautionary Obligations, Good Faith, Guarantee Liability, Reduction of Security
Contract Law Banking Law Property Law Standard Security Cautionary Obligations Good Faith Guarantee Liability Reduction of Security

Case Brief

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Parties

Mrs Kishwer Ahmed (AP)

Pursuer

Clydesdale Bank plc

Defender

Procedural Posture

Civil Action for Reduction / Debate on Relevancy, Judgment

Legal Issues

  1. 1 Whether the defenders acted in bad faith by failing to correct a false impression regarding the pursuer's liability as guarantor under a standard security.
  2. 2 Whether the pursuer has relevant averments to support reduction of the standard security affecting her interest.

Ratio Decidendi

The pursuer's liability as cautioner for her husband's debts was constituted by the standard security executed in 1991, in circumstances not impugned and with legal advice. The alleged bad faith by the defenders in 1995 did not alter or worsen the pursuer's position, nor did it constitute a misrepresentation affecting the constitution of the obligation. Therefore, the pursuer has no relevant averments to support reduction of the standard security.

Court Disposition

action dismissed

Orders

  • Defenders' first plea-in-law sustained
  • Action dismissed