The solicitors paid out the mortgage advance without having received a mortgage document executed by the borrower at all. It was conceded that such payment was made without authority.
Held: The solicitors had acted in breach of trust. No charge was ever executed, and so the solicitors were not saved from the obligation to reconstitute the trust by the later completion of the transaction, as had been envisaged in Target.
 EWHC 851 (Ch)
England and Wales
Cited – Mortgage Express v Hafeez 2011
The claimant advanced money for the purchase of various properties. These were paid by the defendant solicitors (acting for the claimant) to the account of ‘McGraths’ which the defendant thought was a firm of solicitors, and against undertakings . .
Cited – Knight and Another v Haynes Duffell, Kentish and Co (A Firm) CA 14-Feb-2003
Solicitors had allowed the claimants’ cause of action against their original solicitors to become time barred. One issue now was whether the trial judge was right to find that the original solicitors had improperly paid out monies held on client . .
Lists of cited by and citing cases may be incomplete.
Updated: 19 July 2022; Ref: scu.450474