National Home Loans Corp Plc v Giffen Couch & Archer
National Home Loans Corp Plc v Giffen Couch & Archer
- 1997
- All England Law Reports [1997] 3 All ER 808-816(9) .
CA 18 June 1997. The plaintiff, a mortgage lender, offered a married couple a loan secured by a remortgage on the borrower`s property. The defendant, a firm of solicitors, agreed to act for both the plaintiff and the borrowers. The plaintiff sent written instructions to the defendant requiring them to investigate title to the property and the financial circumstances of the borrowers. There was no requirement to report on the state of the account of the existing mortgage. The defendants became aware of arrears on the existing mortgage but did not inform the mortgage lenders. The borrowers became in arrears and the plaintiff, as mortgagees, sold the property. The plaintiff commenced proceedings against the solicitors for breach of duty in failing to reveal information relating to the borrowers. The judge held that the defendants had been negligent and awarded damages to the plaintiff. The defendants appealed. Appeal allowed.
BREACH OF DUTY
MORTGAGE LENDERS
NATIONAL HOME LOANS CORP PLC V GIFFEN COUCH & ARCHER
NEGLIGENCE
SOLICITORS
CA 18 June 1997. The plaintiff, a mortgage lender, offered a married couple a loan secured by a remortgage on the borrower`s property. The defendant, a firm of solicitors, agreed to act for both the plaintiff and the borrowers. The plaintiff sent written instructions to the defendant requiring them to investigate title to the property and the financial circumstances of the borrowers. There was no requirement to report on the state of the account of the existing mortgage. The defendants became aware of arrears on the existing mortgage but did not inform the mortgage lenders. The borrowers became in arrears and the plaintiff, as mortgagees, sold the property. The plaintiff commenced proceedings against the solicitors for breach of duty in failing to reveal information relating to the borrowers. The judge held that the defendants had been negligent and awarded damages to the plaintiff. The defendants appealed. Appeal allowed.
BREACH OF DUTY
MORTGAGE LENDERS
NATIONAL HOME LOANS CORP PLC V GIFFEN COUCH & ARCHER
NEGLIGENCE
SOLICITORS