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Contract – Construction. Shares in a company had been used as security for a loan along with an equitable mortgage of a valuable property in France. The company whose shares had been used as security took over the loan as borrower. The lender assigned its benefit under the loan to another company. The villa was sold to the defendants in part settlement of money obtained by fraud by the man who owned the company that had taken out the loan. The lender and assignee claimed actionable interference with their rights and a breach of the loan agreement. The judge found in favour of the lender and assignee. The Court of Appeal, Civil Division upheld the judge's decision for the reasons he had given and dismissed the appeal.
Contract – Construction. Shares in a company had been used as security for a loan along with an equitable mortgage of a valuable property in France. The company whose shares had been used as security took over the loan as borrower. The lender assigned its benefit under the loan to another company. The villa was sold to the defendants in part settlement of money obtained by fraud by the man who owned the company that had taken out the loan. The lender and assignee claimed actionable interference with their rights and a breach of the loan agreement. The judge found in favour of the lender and assignee. The Court of Appeal, Civil Division upheld the judge's decision for the reasons he had given and dismissed the appeal.
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