AIB Group (UK) Plc v. Guarino [2005] ScotSC 74 (27 October 2005)

AIB Group (UK) Plc v. Guarino [2005] ScotSC 74 (27 October 2005)

The court held that the statutory calling-up procedure under the 1970 Act does not require a prior demand for payment to constitute the debt; the calling-up notice itself is sufficient to trigger the creditor's enforcement rights under the standard security, especially where the deed contains a consent to registration clause.

Citation
[2005] ScotSC 74
Parties
Pursuer: AIB Group (UK) Plc; Defender: Marco Filippo Guarino
Jurisdiction
Scotland
Judgment Date
27 October 2005
Procedural Posture
Civil / Final Judgment
Outcome
judgment for pursuer
Legal Topics
Standard Security, Repossession, Calling Up Notice, Guarantee, Enforcement of Security
Property Law Secured Transactions Standard Security Repossession Calling Up Notice Guarantee Enforcement of Security

Case Brief

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Parties

AIB Group (UK) Plc

Pursuer

Marco Filippo Guarino

Defender

Procedural Posture

Civil / Final Judgment

Legal Issues

  1. 1 Whether a prior demand for payment is required before serving a calling-up notice under a standard security when the security is granted for obligations under a guarantee.
  2. 2 Whether the calling-up notice itself constitutes sufficient demand to trigger enforcement rights under the Conveyancing and Feudal Reform (Scotland) Act 1970.

Ratio Decidendi

The court held that the statutory calling-up procedure under the 1970 Act does not require a prior demand for payment to constitute the debt; the calling-up notice itself is sufficient to trigger the creditor's enforcement rights under the standard security, especially where the deed contains a consent to registration clause.

Court Disposition

judgment for pursuer

Orders

  • Declaration that the defender granted a Standard Security in favour of the pursuers registered under Title Number GLA 93561 on 18 February 2002.
  • Declaration that the defender is in default within the meaning of condition 9(1)(a) of the standard conditions as set out in Schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 and the pursuers are entitled to all remedies under Section 20 and Schedule 3 paragraph 10 of the Act.