Waller-Edwards (Appellant) v One Savings Bank Plc (Respondent)

Hearing listed

Case summary
Appeal
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Case summary

Case ID

UKSC/2024/0066

Parties

Appellant(s)

Catherine Waller-Edwards

Respondent(s)

One Savings Bank Plc

Issue

What is the test for determining if a lender has constructive notice (and is, therefore, put on inquiry) that one party in a non-commercial relationship is being unduly influenced to enter a loan with their partner that will, in part, be used to benefit only their partner?

Facts

The Appellant met Mr Nicholas Bishop, a property developer, in 2011 and the two entered a relationship. In 2012, Mr Bishop suggested that the Appellant should exchange her home (which she owned outright) and £150,000 in savings for a property that he was building. That property was subject to an existing charge. The Appellant was given a second charge. In 2013, the Respondent loaned £384,000 under a remortgage. Most was used for the couple’s joint purposes, but £40,000 went to pay off Mr Bishop’s personal debts. The relationship between the Appellant and Mr Bishop ended. They fell into arrears on the remortgage repayments and the Respondent began possession proceedings in 2021. The Appellant alleged that she had acted under undue influence from Mr Bishop when entering the remortgage, meaning that the remortgage should be set aside as between her and the Respondent. The County Court accepted that there had been undue influence but held that the Respondent was neither fixed with constructive notice nor put on inquiry in respect of that influence, and granted the Respondent possession. The High Court and Court of Appeal dismissed the Appellant’s appeals against this decision. The Appellant now appeals to the Supreme Court.