In Stickley v Barclays Bank (LTL 9 May 2013), receivers were appointed over the security given for a defaulted loan and proceeded to sell it. Although the receivers were deemed by the charge to be the agents of the borrower, since the contract of sale entered into by the receivers provided for the transfer document to be executed by the lender (so as to take priority over subsequent charges) it was held that a duty on the part of the lender to ensure that the best price was obtained potentially arose as a consequence. In insolvency proceedings, the Registrar rejected the argument that no such duty could airse, and found it to be a triable issue when setting aside a statutory demand for the shortfall from the sale of the security on the basis of a cross-claim for the sale being at an undervalue. Richard Clegg acted for the successful applicant.
9 May 2013