Source: All England Reporter
Publisher Citation: [2002] All ER (D) 184 (Jul)
Court: Court of Appeal, Civil Division

Pill, Robert Walker LJJ and Sir Martin Nourse

Representation William Bojczuk (instructed by Eversheds, Cardiff) for the bank.
  John de Waal (instructed by Tyndallwoods, Birmingham) for the wife.
  The husband did not appear and was not represented.
Judgment Dates: 11 July 2002


Equity - Undue influence - Presumption of undue influence - Husband and wife - Constructive notice of undue influence - Duty of creditor to take reasonable steps to satisfy himself that wife having entered into obligation freely and with knowledge of true facts - Mortgage over jointly owned property to finance purchase of husband's business property - Bank appointing solicitor to advise husband and wife in respect of her liabilities under charge - Solicitor providing confirmation that wife provided with independent legal advice - Whether confirmation sufficient to satisfy duty on creditor.

The Case

On the facts of the instant case, a confirmation from solicitors that all joint owners had been provided with independent advice in a mortgage transaction was sufficient to satisfy the duty on a bank to take reasonable steps to satisfy itself that a wife had entered into a mortgage freely and with knowledge of the true facts, even where the bank had not provided specific instructions to the solicitors relating to the position of husband and wife.

Practice Areas

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