LLOYDS TSB BANK PLC v MARKANDAN & UDDIN [2012] EWCA Civ 65
February 2012 - William Flenley QC, a leading silk in the field of professional liability, highlights a Court of Appeal judgment which makes an important point in relation to breach of trust.
The Court of Appeal gave judgment in a case concerning breach of trust in lenders' claims, Lloyds TSB Bank plc v Markandan & Uddin. The defendant solicitors acted for the purchaser and lender in a transaction which turned out to be a sham, in that fraudsters (i) impersonated the owners of the property and pretended to wish to sell it, and (ii) pretended to be solicitors acting for the owners.
The result suggests that in such circumstances borrowers' solicitors who release the mortgage advance may be in breach of trust, though if they acted carefully they may be excused liability pursuant to s.61 Trustee Act 1925."
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