Mr S wanted to borrow money, and the bank sought security over the jointly owned house. Mr S signed the charge, and flew to the Netherlands to see Mrs W. After consuming a fair amount of alcohol, Mrs S also executed the charge and a certificate that she had been given appropriate information and advice by Mr S’s solicitor, who also was acting for the bank. She resisted the Bank’s later action for possession of the property, challenging the validity of the charge.
Held: It was arguable on her behalf that she acted under undue influence, and had not understood the significance of the solicitor’s advice.
However, to escape the bank being able to rely upon the fact of her advice from the solicitor, she would have to show that in providing that advice he was acting as agent for the Bank. Only on that basis could his knowledge be imputed to the Bank so as to vitiate the change. The bank had rightly been satisfied that she had had independent advice and the associated duties were accepted by the solicitor.
Citations:
Independent 08-Mar-1995, [1995] 1 FLR 1034
Jurisdiction:
England and Wales
Cited by:
Considered – Governor and Company of Bank of Scotland v Bennett and Another ChD 1997
Mrs Bennett defended the bank’s claim for possession of the matrimonial home charged to the bank to secure her husband’s borrowings. She said that her signature, both to the guarantee and to the legal charge, had been procured by her husband’s undue . .
Lists of cited by and citing cases may be incomplete.
Banking
Updated: 16 August 2022; Ref: scu.83712