On Wednesday 11 March 2015 the UK Supreme Court announced its decision in favour of MBM Commercial’s client, Derek Carlyle. The background to this case is that in 2007 Mr Carlyle sought funding from RBS to both buy and develop plots at Gleneagles. Due to a buy back clause imposed by Gleneagles, Mr Carlyle would make a loss on the land unless he developed it. He advised RBS that it was essential if lending him the money to buy the land that the bank also lent him the money to develop it.
RBS confirmed that they understood this during telephone discussions and verbally advised him that funding was “all agreed”. However, no development funding was ever provided by RBS, who subsequently raised proceedings against Mr Carlyle seeking recovery of the sums loaned by them for the land acquisition.
All of the five UK Supreme Court Justices have found in Mr Carlyle’s favour, making this an overwhelming victory for the property developer who has defended his case against RBS since 2008. The UK Supreme Court’s decision marks the successful end to the long running legal battle between Mr Carlyle and RBS on the question of whether RBS had promised to provide Mr Carlyle with the development funding for the project in Gleneagles.
MBM Commercial have acted as Derek Carlyle’s solicitors and are delighted that after years of Mr Carlyle standing up to the large Bank, the UK’s highest court has finally confirmed that the Court of first instance was right in holding that RBS had indeed given an undertaking or contractual promise to Mr Carlyle.
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