R - Redemption
24/5/18
ST VINCENT EUROPEAN GENERAL PARTNER LTD v ROBINSON [2018] EWHC 1230 (Comm)
Considers the right of a mortgagor to redeem a mortgage by tender [56]. Mortgaged property is not to be treated as having been redeemed in the event of wrongful refusal of a tender without a payment into court. The tender must also be unconditional [60]. It is at least arguable that an unconditional offer to pay by means of a bank transfer would constitute a valid tender [61]. Also considers the rule against recovery of company losses by a shareholder (reflective loss) [67] and the exception allowing recovery where the wrong done to the company has made it impossible for the company to pursue its cause of action against the wrongdoer (Giles v Rhind (2002). On the facts the claims could not succeed and were summarily dismissed.
17/10/13
SHEARER v SPRING CAPITAL LTD [2013] EWHC 3148 (Ch)
The court refused to strike out a redemption action relating to loans made by the defendant to companies whose liabilities had been guaranteed by the claimant. Issues which merited more detailed consideration at trial included whether tender of payment needed to cover costs, whether tender could be made on condition that a new lender would step into existing security, whether the tender could be and had been conditional on execution of specified release documents, and whether a re-tender was necessary after the expiry of the time specified for signing the documents.