Breach of trust — all or nothing?
The Court of Appeal recently handed down judgment in AIB v Mark Redler & Co. The case dealt with two main issues: when does a solicitor have authority to release the advance in a remortgage transaction?; and if the solicitor does act in breach of trust, what is the correct remedy?
AIB lent £3.3 million to the borrowers by way of remortgage. In error, Mark Redler & Co, a firm of solicitors, acting for the borrowers and AIB, paid only £1.2 million to Barclays to redeem its charge, leaving £273,000 outstanding (the balance went to the borrowers). Barclays refused to release its charge so the claimant, AIB, did not get the first charge over the property it had expected. The borrowers defaulted and the property was sold, realising £1.2 million, leaving AIB, as second chargeholder, out of pocket by around £3 million. AIB sued the solicitors, not just for the sum paid to the borrowers by mistake, but for the whole of its advance, alleging that the solicitors had acted in breach of trust…
If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Walker Morris
News from The Lawyer
Briefings from Walker Morris
Civil litigation in recent years has been dominated by cases and commentary concerned with costs, court fees, procedure and proportionality.
Key points on a clarification of the remedies available for misrepresentation.
Analysis from The Lawyer
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all
The law school war shows no signs of ending. But we have, perhaps, reached the end of the beginning.