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Bristol and West Building Society v May May & Merrimans and others

Language: English Series: All England Law Reports ; [1997] 3 All ER 206-232(27)Publication details: 1997Subject(s): Summary: ChD 17 February 1997. Defendant solictors M acted for B in a loan secured by a mortgage. The borrower was required to pay a mortgage indemnity guarantee, arranged through an insurance company, which was paid through a deduction in the amount advanced. Under the terms of the MIG and in the event that B exercised its power of sale, the insurance company became liable to pay the balance between the proceeds of sale and the outstanding debt. The court had held that the defendants were liable to this full amount. The issue arose as to whether B was obliged to give credit for sums recovered or recoverable under the MIG. "Held" The defendants should be given the opportunity to consider whether they should join the insurers so that the issue might be determined.
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Law report London Journal article ABS57381 (Browse shelf(Opens below)) 1 Available 79669-1001

ChD 17 February 1997. Defendant solictors M acted for B in a loan secured by a mortgage. The borrower was required to pay a mortgage indemnity guarantee, arranged through an insurance company, which was paid through a deduction in the amount advanced. Under the terms of the MIG and in the event that B exercised its power of sale, the insurance company became liable to pay the balance between the proceeds of sale and the outstanding debt. The court had held that the defendants were liable to this full amount. The issue arose as to whether B was obliged to give credit for sums recovered or recoverable under the MIG. "Held" The defendants should be given the opportunity to consider whether they should join the insurers so that the issue might be determined.