Credit Lyonnais Bank Nederland NV v Burch: CA 1 Jul 1996

A Bank was to assume that undue influence existed where they knew that an employee was giving security for his employer’s debt to the bank. An unlimited guarantee given by an employee to his employer’s bank was set aside as unconscionable. The circumstances in which the doctrine of unconscionable bargains would apply were similar to those of undue influence. ‘Equity’s jurisdiction to relieve against (unconscionable bargains), although more rarely exercised in modern times is at least as venerable as its jurisdiction to relieve against those procured by undue influence.’ When attending his client to witness such a document, the solicitor must in any event advise her that she is under no obligation to enter into the transaction at all and, if she still wishes to do so, that she is not bound to accept the terms of any document which has been put before her.


Nourse LJ


Gazette 04-Sep-1996, Times 01-Jul-1996, [1997] 1 All ER 144


England and Wales

Cited by:

CitedChagos Islanders v The Attorney General, Her Majesty’s British Indian Ocean Territory Commissioner QBD 9-Oct-2003
The Chagos Islands had been a British dependent territory since 1814. The British government repatriated the islanders in the 1960s, and the Ilois now sought damages for their wrongful displacement, misfeasance, deceit, negligence and to establish a . .
CitedPortman Building Society v Dusangh and Others CA 19-Apr-2000
The defendant sought to set aside an order for possession under a mortgage.
Held: Where a case was strong enough on its face in terms of conduct and terms, unconscionable conduct could be inferred if there was no explanation offered to . .
CitedRoyal Bank of Scotland v Etridge (No 2); Barclays Bank plc v Harris; Midland Bank plc v Wallace, etc HL 11-Oct-2001
Wives had charged the family homes to secure their husband’s business borrowings, and now resisted possession orders, claiming undue influence.
Held: Undue influence is an equitable protection created to undo the effect of excess influence of . .
Lists of cited by and citing cases may be incomplete.

Banking, Undue Influence

Updated: 31 October 2022; Ref: scu.79606