The Scottish Appeal Court (the Inner House of the Court of Session) issued a decision last Thursday (26th September) which creditors will be pleased to note maintains a common sense approach to the issue of reasonableness.
In Bridging Loans Limited v Hutton, the customer accepted she was in default but claimed this was not her fault as she had not been able to sell the property for three years. Ms Hutton also claimed she needed a permanent residence for health reasons, such that the court should not grant a decree of ejection. However, the court found there was no evidence of ill health.
By the time the case reached this stage, the sum due was £150,000, a material increase from the original advance of £50,000. Scotland’s top judge, Lord Carloway, found three years was “ample opportunity” to arrange a sale. The appeal court also confirmed the view of a lower court that the interests of “the innocent victim of the default” should be taken into account.
This decision does not represent a change in Scots law but decisions in this area, at this level, are rare – and the “no nonsense” approach taken by the highest court based in Scotland reiterates that this jurisdiction remains a place where common sense will be applied in the enforcement of securities.
