Monnow Developments v Morgan  EWCA Civ 1437
Barrister: Charlie Newington-Bridges
Charlie was instructed by Neil Morgan, partner at Darwin Gray Solicitors, to represent the successful Respondent, Monnow Developments Limited.
Area of Law: Company
Summary: The Appellant, Mr Morgan, borrowed £250,000 from the Respondent, Monnow Developments, a property development company. The loan was intended to allow Mr Morgan to invest £750,000 in a financial services company, Pure Options, which was an enterprise investment scheme with potential tax benefits for investors. The investment in Pure Options was also in the form of a loan, the terms of which were specified in loan notes. The terms of the loan notes included an interest rate of 8%, but interest was to be paid when cash flow allowed. Pure Options became insolvent before any interest had been paid. Mr Morgan repaid the capital borrowed from Monnow but no interest.
The issue at first instance was whether under the agreement between the Appellant and Monnow, the Appellant was legally obliged to pay interest to Monnow in circumstances where he had received no interest on his loan to Pure Options. He contended that he was not. At first instance it was held that on a proper construction of the agreement Mr Morgan was obliged to pay interest. In the alternative, the Appellant argued that the agreement as drafted failed to reflect the true intention of the parties, namely that no interest should be paid in these circumstances and should be rectified to achieve that result. This counterclaim was also rejected by the judge.
In the appeal, it was submitted on Mr Morgan’s behalf that the judge was wrong on both counts; either he ought to have http://www.eta-i.org/provigil.html construed the contract in the Appellant’s favour or, if that was not possible, he should have rectified it to achieve the result that no interest was payable. Elias LJ, giving the leading judgment, found that on the proper construction of the loan agreement between Monnow and Mr Morgan interest was payable at the rate of 8% and that the criteria for rectifying the loan agreement were not satisfied on the facts.
The appeal judgment is interesting in at least three respects. Firstly in relation to interpretation, the court was not prepared to accept arguments that strained the language of the contract and which would lead to artificial results; it placed emphasis on the interpretation that accorded with commercial reality. Secondly, the court was concerned about the use of pre-contractual negotiation documentation in the interpretation case, but nonetheless was prepared to find that certain terms in the pre-contractual negotiations could be used in the interpretation process as they reflected common usage in the background to the contract. Thirdly, on rectification, the court was focussed on the evidence of the parties and their witnesses to determine whether or not there was an outward expression of accord; finding none, it rejected the rectification argument.
View the case commentary: Monnow Developments v Morgan – Charlie Newington Bridges – Case Commentary – June 2017
Read the full article: Monnow Developments v Morgan – Charlie Newington Bridges – Article – June 2017
Date: 19 May 2017
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Interim injunctions and human rights issues in relation to gypsies and travelers
Barrister: John Dickinson
Area of Law: Wills, Trusts and Tax
Summary: John Dickinson was successful in acting for the Claimants in the two day trial heard on 2nd and 3rd August, with judgment being handed down by His Honour Judge Matthews on 11th August 2017 in the Chancery Division of the Bristol District Registry. The Claimants established a constructive trust under the doctrine of mutual wills under which the estate of their Deceased mother was held for the Claimants, rather than being held under her last Will for various of her grandchildren and others.
The judgment is available here.
Barrister: Andrew Kearney
Area of Law: Construction
Summary: Andrew Kearney appeared in the TCC for Amey in a case in which two construction adjudication decisions were found to have become finally binding due to failure to give a notice of dissatisfaction.
Read a summary and the full case published on BAILII: http://www.bailii.org/ew/cases/EWHC/TCC/2017/B13.html
Barrister: Christopher Sharp QC
Area of Law: Family
Summary: Christopher Sharp QC, family law silk, appeared for the local authority in the recent case of Re K (A Child: deceased)  EWHC 1083 (Fam) which reviews the case law on the powers of the court, and clarifies the extent of the inherent jurisdiction, in addressing the appropriate disposal of the body of a child.
Read the full case published on BAILII: Re K (A Child: deceased)  EWHC 1083 (Fam)
Re S (A child) (Care Proceedings: Surrogacy) sub nom A Local Authority (Applicant) v (1) W (2) K (3) D (4) S (By Her Children’s Guardian) (Respondents) & A (Intervener) (2015)  EWFC 99
Barrister: Abigail Bond
Barrister: Natasha Dzameh
Area of Law: Property and Real Estate
Summary: Natasha, instructed by Lucy Mills at Gregg Latchams Limited, was successful in a rolled up hearing of her client’s application for permission to appeal and the appeal before His Honour Judge Denyer QC. This case concerned the liability of a non-resident tenant, who was also a director of the landlord management company, for service charges. The Service Charges (Consultation Requirements) (England) Regulations 2003 and section 20(3) of the Landlord and Tenant Act 1985 were of particular importance. Natasha argued that there had been an error of fact, an error of law and serious procedural irregularity. This case reminds landlords of the importance of complying with the relevant legislation and dealing with their claim in the appropriate forum. To read the full article please click here.