Denis Minns, a former director of Orpington-based property development and building company Banbury Homes Ltd (BHL), is seeking to ward off moves to make him contribute to a demand for nearly £1m, made by Barclays Bank, after the BHH failed in early 1992.
Mr Minns joined the firm, originally based in Chislehurst, when it was established in 1987. He became a director and company secretary, and held 20% of the companys shares, while Bernard Hampton, held the other 80%
Mr Minns’ employment with the company was terminated in August 1990, and the bank was notified that he was no longer a signatory on the companys account. When the company failed, the bank made a demand of £912,579 on the company and its guarantors, which was settled between Barclays and Mr Hampton. Mr Hampton now seeks a contribution from Mr Minns, who is asking the court to rule that he does not have to pay.
The hearing centres on an unlimited guarantee that was allegedly signed by both Mr Hampton and Mr Minns in 1988, but which Mr Minns says he has no recollection of agreeing to or signing. The purported guarantee held both liable for unlimited fees in the event of the company failing.
Mr Minns argues that the claim is time-barred, and that the purported guarantee is void, since he was made redundant and excluded from the management of BHL.
He claims that, even if the guarantee is not void, then on equitable principles he should not have to contribute. He also alleges that Mr Hampton conducted his business in a way that was prejudicial to him as a co-guarantor.
The hearing, before Deputy Judge Kevin Garnett QC, is expected to last five days.
Hampton v Minns Chancery Division (Mr Kevin Garnett QC, sitting as a deputy judge of the division) 29 January 2001.
John Dagnall (instructed by Royds Treadwell) appears for the claimant; Murray Shanks (instructed by Clarkson Wright & Jakes, of Orpington) appears for the defendant.
PLS News 30/1/01
