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The editor of this section of the site is Nigel Clayton of Kings Chambers, Leeds and Manchester. Nigel also maintains the specialist website dealing with mortgages at www.legalmortgage.co.uk


Contempt of court by lender

Paratus AMC Ltd v Lewis
[2014] EWHC 1577 (Ch)


It was a contempt of court for a mortgage lender to disobey a court order, albeit one which contained a mistake. The proper course was to apply to vary it. The court imposed sanctions for the contempt.


P, a lender, repossessed and sold a mortgaged property, out of which it recouped its debt including costs, leaving a surplus, which was ordered to be paid into court. P subsequently discovered it had miscalculated its costs, leaving two further sums due which it sought to recoup out of the surplus, and only paid in a lesser sum.

L, the borrower, applied to court for an order that P was to comply with the former order of the Court, which P failed to do. P belatedly applied to vary the former order. The application was supported by a witness statement from a paralegal employed by P’s solicitors. P did not offer any apology or explanation for the contempt of court at this stage. L opposed the application. Given the backdrop of repeated contempts, L argued that the court should decline to make the order asked for.


The court deprecated the attitude demonstrated by P and P’s solicitors. It was not for a litigant, even if convinced that the court had made a mistake, simply to ignore repeated orders of the court that they should do a particular thing. The appropriate course would have been for P either to apply for a variation of the former order in good time before it came into effec ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW

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