The court considered a request for rescission. A guarantee had been given by one of the defendants as security for a loan made by solicitors to his company. He complained that the solicitor acting for him had a conflict of interest and had been in breach of his fiduciary duty by failing to disclose that his firm received service charges on the loan.
Held: Rescission had been properly refused. Rescission was not available as of right, but was discretionary. Dyson LJ: ‘When exercising its equitable jurisdiction the court considers what fairness requires not only when addressing the question of the precise form of relief, but also when considering whether the remedy should be granted at all.’ However, the court ordered the solicitor to account for the service charge to his client.
Judges:
Mummery and Dyson LJJ and Douglas Brown J
Citations:
[2002] LlR PN 309
Jurisdiction:
England and Wales
Cited by:
Cited – Wilson and Another v Hurstanger Ltd CA 4-Apr-2007
The company sought to enforce its loan agreement and charge over the defendants’ property. The defendants appealed saying that the agreement was unenforceable under the Act, since a commission had been paid to the introducing broker, and his fee had . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 10 May 2022; Ref: scu.251000