First National Bank plc has launched an appeal court challenge to a ruling by Judge Brandt, sitting in Colchester County Court in February 2000, that a woman should not be held liable under the terms of a mortgage loan to her and her former husband in January 1991.
The ruling arose on a preliminary issue in possession proceedings brought by the bank in respect of the former matrimonial home of Laura and Anthony Walker at 8 Mangapp Chase, Burnham-on-Crouch, Essex, after arrears accrued under the mortgage.
Mrs Walker, who still lives on the premises, claimed that she had been subject to the undue influence of her husband in agreeing to the mortgage. She argued that she was, in effect, acting as a surety to the liabilities of her husbands business, with which she had no direct link, and that this was manifestly disadvantageous to her.
The county court judge accepted that view of the situation, but the bank now seeks to overturn that decision.
Arguing that Mrs Walker should be bound by the terms of the deed, counsel for the bank, Josephine Hayes, said in court that the couple had both acknowledged their liability under the terms of the transaction.
She argued that the judge had been wrong to hold that the wife should not be held responsible for the wording of the conveyance, since Mrs Walker had executed the conveyance and her solicitors had approved and participated in the drafting of it.
The hearing continues
First National Bank plc v Walker Court of Appeal (Sir Andrew Morritt V-C, Chadwick and Rix LJJ) 22 November 2000
Josephine Hayes (instructed by Davis & Co, of High Wycombe) appeared for the appellant; Rajinder Sahonte (instructed by Palmers, of South Woodham Ferrers) appeared for the respondent.
PLS News 23/11/00
