Home Information Cases Bank of Baroda v Shah & Anor (1988)

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Bank of Baroda v Shah & Anor (1988)

Summary

Bank not under a duty to ensure guarantors have independent advice.

Facts

Bank's appeal against dismissal of possession proceedings where judge had held that respondents' guarantee of a relative's company and mortgage of respondents' house had been induced by undue influence, as the respondents had no independent legal advice and the company solicitor who purported to act on their behalf,was not instructed by them.

Held

In the light of Coldunnell Ltd v Gallon & Anor (1986) 2 WLR 466 there was no duty on the bank or its solicitor to ensure the respondents took entirely independent legal advice.The bank was entitled to expect the solicitor to act honestly & was unaffected by any undue influence.
Appeal allowed.

Court of Appeal
Dillon LJ, Neill LJ, Stocker LJ
Judgment date
23 March 1988
References

[1988] 3 All ER 24 : [1988] Fin LR 403 : (1988) 138 NLJ Rep 98

Previous Members

hh-judge-david-hodge-qc,HHJ David Hodge QC

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