Promontoria (Henrico) Ltd v Friel

Lending and security – Guarantee – Assignation – Enforcement. Court of Session: In an action in which the pursuer sought payment of £800,000 under a personal guarantee granted by the defender in favour of a bank in respect of a company of which he was a director and shareholder, the bank having sought to transfer part of its loan book, including lending to the company to the pursuer, the pursuer averring that the bank had assigned the guarantee to it, the court held that the pursuer had proved that the guarantee the defender granted in favour of the bank was of the tenor of a copy document lodged in process; that the copy of the assignation produced to the court purporting to transfer the bank's loan book to the pursuer had been proved in accordance with the laws of evidence and accordingly the pursuer had proved its title to sue; that on a proper construction of the assignation the lending to the company was assigned by the bank to the pursuer and so it had title to sue; that the assignation was valid and the pursuer was entitled to seek recovery under the personal guarantee; and that it had proved that £800,000 was due.

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