Owen v. Tate
England and Wales Court of Appeal
[1976] Q.B. 402 (1974)
- Written by Josh Lee, JD
Facts
The defendants took out a loan from Lloyds Bank, which was secured by Miss Lightfoot’s property. Later, Miss Lightfoot asked the plaintiff for help in clearing the title to her land. The plaintiff, without any discussion with or notification to the defendants, deposited the total sum outstanding under the loan at the bank and signed a guarantee for the amount due under the loan. The plaintiff’s only motivation for issuing the guarantee was helping Miss Lightfoot to clear the title to her property. The next year, the bank called upon the guarantee and used the money deposited by the plaintiff to pay off the loan. The plaintiff then requested reimbursement from the defendants. The defendants refused, and the plaintiff filed suit.
Rule of Law
Issue
Holding and Reasoning (Scarman, J.)
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