Lord Toulson 's Case Of Aib Group ( Uk ) Plc V Mark Redler & Co Solicitors

2203 WordsApr 7, 20169 Pages
Lord Toulson mentioned the Judicature Act 1873 in the case of AIB Group (UK) Plc v Mark Redler & Co Solicitors , and what ensued from it. The case deals with the applicable principles of causation in the case of a breach in trust. It held that a “but for” was application in such circumstances for equitable compensation. The case deals with a standard re-mortgage of a residential property. It starts when Mr and Mrs Sondhi applied to AIB group for a loan of £3.3m. Noting that they already had a mortgage with Barclays, their intention was to redeem it using AIB’s loan. Unfortunately, the solicitors at Mark Redler & Co negligently “mistook a redemption figure from Barclays as relating to the whole of their charge” it resulted as the solicitors underpaid Barclays by £309,000. The issue was that Barclays’ charge remained in place and the loan from AIB was secured only by a “second charge over the property” . Once the property was sold, there was a significant shortfall of some £2.5m. Lord Toulson also added in the case “where a trust is part of the machinery for the performance of a contract, that fact will be relevant in considering what loss has been suffered by reason of a breach of the trust.” After explaining a little bit about the case, in which the sentence we focus on has been said, this essay is going to principally deal with the differences between Common Law and Equity Law. Indeed, even though the Act 140 years ago, fused both, there are still differences that

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