Dispute Resolution Briefing Notes

Wharton v Bancroft, death-bed Wills and Legal Costs

Wharton v Bancroft, death-bed Wills and Legal Costs

Summary: The recent court case of Wharton v Bancroft [2011] EWHC 3250 (Ch) emphasises the need to be wary when challenging a Will. Although contentious probate claims will often be emotionally charged, this case illustrates that it is important for both clients and solicitors to put aside personal issues which might impact on their decision-making and to approach such cases dispassionately and proportionately. A failure to approach such cases appropriately can, as happened in this case, lead to significant cost liabilities for unsuccessful parties.

The case also serves as a reminder to practitioners who are involved in making a death-bed Will as to the requirements for ensuring the testator has the requisite mental capacity to make a Will, one of the so called “Golden Rules”.

Please speak to Richard Monkcom, Head of Druces LLP’s Private Client team for more information. A pdf of our full briefing note on the subject can be downloaded via the link below.

Relevant to: Individuals who are seeking to challenge the terms of a Will and Legal Practitioners

Private Client Briefing Note Wharton v Bancroft, death-bed Wills and Legal Costs (Mar 2012)

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Repudiatory breach of contract: (1) The Trademark Licensing (2) Lonsdale Sports v Leofelis & ors

Repudiatory breach of contract: (1) The Trademark Licensing (2) Lonsdale Sports v Leofelis & ors

Summary: Two contracting parties each purported to terminate a contract on the grounds of the other’s repudiatory breach. In this trade mark licence dispute, the licensee purported to terminate a trade mark licence agreement on the grounds of a repudiatory breach by the licensor and treated the agreement as at an end. The licensor did not accept the repudiation, but terminated the agreement on the grounds of the licensee’s own breach. The ground relied upon by the licensee to terminate transpired not to be a breach, but it sought nonetheless to rely on another alleged breach not known to it at the time, to justify termination.

The court ruled that the later alleged breach can be relied upon by the licensee as a defence to the licensor’s claim for damages, but not to found a claim for damages against the licensor, because the unknown alleged breach was not the cause of the termination.

Please speak to Marie-Louise King, Partner in Druces LLP’s Litigation & Dispute Resolution team, and who acted for the First, Fourth and Fifth Third Parties in the proceedings, for further information

Relevant to: Parties involved in commercial contracts, legal practitioners

Litigation & Dispute Resolution Briefing Note: Repudiatory Breach of Contract, The Trademark Licensing Co and another v Leofelis SA and others (Mar 2012)

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How the Courts interpret oral contracts: BVM Management v Roger Yeomans [2011]

How the Courts interpret oral contracts: BVM Management v Roger Yeomans [2011]

Summary: Oral contracts are binding between parties in the same way as written contracts, except in relation to certain types of transactions such as the sale of land. However because oral contracts are not translated into a single written document, difficulties often arise in identifying what are the exact terms of the agreement. For that reason, lawyers will always advise that contracts should be put into writing. Where they are not, the Courts are often left to resolve disputes between the parties.

The case of BVM Management Limited -v- Roger Yeomans was one such case. The parties had discussed terms for the provision of services by BVM verbally and BVM had indicated a requirement for a minimum of 2 year period for the contract. Various draft documents had passed between the parties, and these drafts contained a clause entitling Yeomans to terminate the contract on 3 months’ notice. Subsequently BVM began providing its services without concluding an agreed written contract, on the basis of the negotiations that had taken place. Yeomans later sought to terminate the contract relying on the 3 month termination provision. BVM refused to accept that the termination provision formed part of the contract.

The Court of Appeal’s decision was that the break provision had been incorporated, by reason of its inclusion in the drafts passing between the parties and BVM’s failure to object to it during the discussions on the drafts. The case highlights the dangers implicit in oral contracts and emphasises the need for parties to be clear in their objection to objectionable contract terms during negotiations, in order to avoid the incorporation of such terms subsequently.

Speak to Toby Stroh, Head of Druces’ Corporate & Commercial team or Julian Johnstone, Head of Druces’ Litigation & Dispute Resolution team for more information 

Relevant to: Parties negotiating commercial contracts, businesses

Corporate & Commercial Briefing Note: Pitfalls of Oral Contracts, BVM Management v Yeomans [2011]

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Administrations: Landlord and Tenant update

Administrations: Landlord and Tenant update

Summary: Richard Baines, Head of Druces’ Business Turnaround, Restructuring and Insolvency team, looks at the recent Court decisions relating to the impact of administrations on landlords and tenants, in an article first published in the InHouse Lawyer magazine in February 2012

Relevant to: Administrators, landlords and tenants

Turnaround, Restructuring & Insolvency briefing note: Administrations, landlord and tenant update (Feb 2012)

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Service of legal proceedings via facebook: AKO Capital

Service of legal proceedings via facebook: AKO Capital

Summary: A High Court Judge has ruled in the case of AKO Capital LLP and Anor -v- TFS Derivatives and Others that civil legal proceedings may be served on a Defendant via his Facebook account, where the Claimant had been unable to locate him for the purpose of serving the legal proceedings in a more traditional manner. Marie-Louise King, a Partner in Druces’ Litigation & Dispute Resolution team considers the decision

Relevant to: Litigants and legal practitioners

Litigation & Dispute Resolution Briefing note: Service by Facebook, AKO Capital (Feb 2012)

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Undue influence and the scope of Solicitors’ duties: Padden v Bevan Ashford

Undue influence and the scope of Solicitors’ duties: Padden v Bevan Ashford

Summary: In Padden v Bevan Ashford Solicitors the Court of Appeal has considered the scope of solicitors’ duties in advising clients in respect of the purpose and effect of transactions, particularly in respect of transactions where there may be a suggestion of undue influence. The case is of particular relevance to practitioners advising clients in respect of mortgage transactions. Julian Johnstone, Head of Druces’ Litigation and Dispute Resolution team, considers the decision

Relevant to: Legal Practitioners, Mortgagors and Mortgagees

Property and Litigation & Dispute Resolution Briefing Note: Padden v Bevan Ashford, Solicitors’ duties and undue influence (Feb 2012)

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A guarantee procured by misrepresentation and undue influence is unenforceable

A guarantee procured by misrepresentation and undue influence is unenforceable

Summary: In the High Court, Trustees of Beardsley Theobalds Retirement Benefits Society v Yardley, a guarantee of a tenant’s obligations under a lease given by an employee of the tenant was unenforceable because it had been procured through undue influence. The employee had not understood the nature of the document he was signing and had not been advised to obtain independent legal advice. Julian Johnstone, Head of Druces’ Litigation & Dispute Resolution team, considers the decision and advises how landlords can protect themselves from similar situations

Relevant to: Landlords and tenants, guarantors, employers and employees

Property and Litigation & Dispute Resolution Briefing Note: Beardsley Theobalds Retirement Benefits Soc. v Yardley, Guarantees and undue influence (Feb 2012)

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Exercising break clauses in leases effectively: Avocet v Merol

Exercising break clauses in leases effectively: Avocet v Merol

Summary: The case of Avocet Industrial Estates LLP v Merol and another [2011] EWHC 3422 (Ch) is an important case for tenants and landlords. It highlights once again how strictly the Courts are measuring tenants’ compliance with pre-conditions for the effective exercise of break clauses in leases. Julian Johnstone, Head of Druces’ Property Litigation & Dispute Resolution team considers this harsh decision and its ramfications

Relevant to: Landlords and Tenants

Property Briefing Note Exercising Break Clauses Effectively Avocet v Merol (Jan 2012)

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Mortgage Express v Martin: permission to appeal out of time

Mortgage Express v Martin: permission to appeal out of time

Summary: The Court of Appeal dismissed an application made by the Claimant for an extension of time for appealing and for permission to appeal out of time. The Court of Appeal held that the Defendant, who was of relatively modest means, had the right to expect the Claimant, a substantial organisation, to abide by the Court’s rules and cited the parties’ differences in means, and the overriding objective of dealing with cases justly, as grounds for refusal. Please speak to Julian Johnstone, head of Druces’ Litigation and Dispute Resolution team for more information

Relevant to: Litigants

Litigation Dispute Resolution Briefing Note: Mortage Express v Martin (Jan 2012)

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Part 36 Offers: Solomon v Cromwell Group Plc

Part 36 Offers: Solomon v Cromwell Group Plc

Summary: The Court of Appeal has confirmed in Solomon v Cromwell Group Plc that the acceptance of a Claimant’s offer under Part 36 of the Civil Procedure Rules to settle a claim before the commencement of proceedings gives rise to an entitlement on the part of the Claimant to its legal costs incurred up to the point of acceptance, even though proceedings have not started nor will start thereafter.

The ruling is an important clarification by the Court of Appeal because the general rule is that in the absence of a contractual right to recover legal costs, a claiming party is not entitled to recover pre-action costs if the defending party satisfies the claim before the issue of proceedings. However that general rule was inconsistent with the scheme contained in Part 36 of the Civil Procedure Rules which expressly refers to the possibility of offers under Part 36 being made (and therefore accepted) prior to the issue of proceedings. For further information speak to Julian Johnstone or Marie-Louise King, Partners in Druces’ Litigation & Dispute Resolution team

Relevant to: Legal Practitioners and Litigants

Litigation & Dispute Resolution Briefing Note, Solomon v Cromwell (Jan 2012)

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