Skipton Building Society must wait to hear whether it has succeeded in warding off a Court of Appeal challenge to a county court award of £14,900 against a guarantor of a loan.
Mr Recorder Duggan found that Skipton had failed to take all reasonable steps to ensure that a security for the loan was sold for the best price reasonably obtainable, and that, as a result, the property had diminished in value by being sold for less that the best possible price. However, he nevertheless held that the society was entitled to money from the guarantor.
On appeal, counsel for the guarantor, Michael Mulholland, argued that the judge had been wrong in holding that there was a breach of warranty and that the guarantor had not been released from his surety.
He claimed that, once a party who had the benefit of a guarantee breached the contract of guarantee, as a result of which the value of the security was diminished, the guarantor was released from his guarantee.
Skipton Building Society v Bratley and another Court of Appeal (Evans and Potter LJJ and Alliott J) 1 December 1999
Michael Mulholland (instructed by Farleys, of Blackburn) appeared for the appellant; Paul Brook (instructed by Walker Foster, of Skipton) appeared for the respondent.
PLS News 3/11/99
