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Crowther v Arbuthnot Latham & Co Ltd: Difference between revisions
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Crowther argued that “reasonableness” in this case could only be determined by reference to the proposed sale price: if it was a fair market value, and nothing else was likely to happen to materially affect the property’s value between the sale and maturity of the loan, Arbuthnot could not reasonably withhold consent. | Crowther argued that “reasonableness” in this case could only be determined by reference to the proposed sale price: if it was a fair market value, and nothing else was likely to happen to materially affect the property’s value between the sale and maturity of the loan, Arbuthnot could not reasonably withhold consent. | ||
Arbuthnot said (per {{casenote|Barclays|Unicredit}}) it was seeking to protect its own commercial interests: if they had thought their loan would be unsecured to the tune of 1.7m, they would have | Arbuthnot said (per {{casenote|Barclays|Unicredit}}) it was seeking to protect its own commercial interests: if they had thought their loan would be unsecured to the tune of 1.7m, they would have not have made it without asking for a bigger spread on the interest. | ||
The problem with this argument was that this is exactly what Arbuthnot ''had'' done: By common agreement the property was never worth more than £4m, even when Arbuthnot advanced the loan. {{t|Schoolboy error}} from the private bankers here. Nor did Arbuthnot have any evidence that the property value had slumped, nor that there was much sign it was likely to rally. | The problem with this argument was that this is exactly what Arbuthnot ''had'' done: By common agreement the property was never worth more than £4m, even when Arbuthnot advanced the loan. {{t|Schoolboy error}} from the private bankers here. Nor did Arbuthnot have any evidence that the property value had slumped, nor that there was much sign it was likely to rally. | ||