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Sale by mortgagee / receiver
This page deals with a number of cases and issues arising out of the duty of a mortgagee or receiver to obtain a proper price when selling the property.
Duty to obtain best price
Michael v Miller
[2004] EWCA Civ 282
Facts
The Millers sold a Gloucestershire Estate to Michael and others and took a charge to secure the balance of the purchase price. Michael planted out thousands of lavender and other herbal plants with a view to selling essential oils. They defaulted on repayment of the loan and Miller repossessed, appointing John D Wood & Co as selling agents. They achieved a sale at £1.625M which was subsequently challenged on a number of grounds. After a two-week trial HHJ Weeks QC held, amongst other things, that while the price fell short of the market value of the property it was within the bracket of non-negligent valuations. The mortgagors appealed, contending that the mortgagees were in breach of their duty to obtain the best price reasonably obtainable. They ran a fairly simple but compelling argument that since best price meant market price, the mortgagees were necessarily liable for the shortfall, and that the concept of the bracket was therefore inappropriate.
Decision
Jonathan Parker LJ, giving the judgment of the Court made some useful comments about th ... THIS IS AN EXTRACT OF THE FULL TEXT. TO GET THE FULL TEXT, SEE BELOW
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