Some limitations on setting aside vulnerable mortgage transactions – 11 Stone Buildings
‘The landmark decision of the House of Lords Royal Bank of Scotland v Etridge (No 2) [2002] 2 AC 773
described the circumstances which render a lending transaction by a bank vulnerable to a challenge for undue influence and provided guidance to bankers as to which steps they would need to take in order to protect their lending, and any security to be taken, from challenge. Several cases decided since Etridgehave demonstrated the breadth of the scope for challenge where bankers have failed to follow the guidance, while others have highlighted some constraints on effective challenges based upon undue influence. Jeremy Cousins QC discussed this topic at a recent lecture of the Chancery Bar Association and shares his thought in this detailed ‘Insider’.’
11 Stone Buildings, January 2014
Source: www.11sb.com
