ON APPEAL FROM LEEDS COUNTY COURT
His Honour Judge Behrens
Claim No: 9LS04476
Strand, London, WC2A 2LL
B e f o r e :
| SIMON HARESIGN
|- and -
|CLYDESDALE BANK PLC (t/a YORKSHIRE BANK)
The Respondent was not represented
Hearing date: 7 March 2011
Crown Copyright ©
Lord Justice Rimer :
'3.1 All amounts outstanding under or in respect of the Facilities are repayable on demand. If the Bank makes a demand for any Facility, all Facilities will be immediately cancelled. The Bank may also, at any time, cancel all or any part of any Facility by notice to the Borrower.
3.2 Subject to clause 3.1, each Facility will be available until the expiry date for such Facility specified in clause 1 when it will be cancelled in full unless the Bank has agreed in writing to extend or renew such Facility in which case it will, subject to clause 3.1 and the terms and conditions of any letter extending or renewing such Facility, be available until the date in such letter when it will be cancelled in full.'
Clause 9.1, in a section headed 'Signing and Law', provides:
'9.1 From the date of receipt by the Bank [of] all of the items under clause 4, this letter will replace all previous letters, agreements or arrangements between the Bank and the Borrower in relation to the provision of the Facilities.'
'… stated that funding was in place but that we needed planning permission and once planning permission was obtained, all the funds were set aside for the Development. He then stated that the Bank would not give full funding until planning permission had been obtained, but that on the granting of planning permission the full facility would be available.'
The case is, therefore, that the key assurance was given in about May 2006 – one expressed in only the most general terms and, perhaps a little remarkably, during a conference call. Any such assurance can anyway only have been in favour of the company, which was the Bank's customer, as Mr Haresign recognised in his address to me. It was not an assurance to Mr Haresign personally, with whom the Bank had no commercial relationship. Mr Haresign asserted, however, that he relied on that statement and believed that funding would be there from the beginning to the end of the development. If so, he would only have been relying upon it as agent for the company.