Caytons Law recently achieved a very favourable outcome for a Defendant firm of solicitors relating to a sensitive six-figure claim brought by a lender relating to alleged undue influence (which was strongly disputed) and proceeding at a District Registry of the High Court. The claim related to a charge by a bank securing a son’s debts with that charge being over the mother’s property.

The son failed to service the debt and the bank pursued the mother for possession of the property. The mother alleged that she was not properly advised and was subject to undue influence and/or that the bank failed to protect her from the possibility of undue influence. The bank, adopting the mother’s allegations, subsequently brought an additional claim against the firm. The firm’s defence was that they did advise the mother and in any event that the bank also sufficiently protected the mother from undue influence. The defence of the case included that based on the interpretation of Etridge (No. 2), scope of duty, mitigation of loss, limitation and also involved issues over witness evidence. Ultimately, we persuaded the bank to discontinue its claim the week before trial and pay the Defendant’s costs (to be assessed if not agreed) with the bank to also make a large interim payment towards the firm’s costs.

For more information please contact Robert Lloyd, Partner.