header-logo header-logo

01 January 2010
Issue: 7397 / Categories: Case law , Judicial line , In Court
printer mail-detail

Escape from mortgage covenants

When non-compliance is alleged, can the undertaking be enforced by committal?

When an ancillary relief order recites in its preamble an undertaking to the court to use best endeavours to procure a mortgage release and non-compliance is alleged, can the undertaking be enforced by committal? If not, can an order be made for specific performance with a penal notice being attached?

The court has no greater powers to deal with breach of an undertaking than it has to deal with breach of an order (Gandolfo v Gandolfo (Standard Chartered Bank, Garnishee) [1981] QB 359, CA).

There is no power vested in a court dealing with an ancillary relief application to order a party to procure the other party’s release from mortgage covenants and so the court could not commit for breach of such an undertaking. Nevertheless, the breach of the undertaking would give rise to a cause of action in contract and separate civil proceedings would have to be initiated by the party with the benefit of the undertaking.

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Haynes Boone—Jeremy Cross

Haynes Boone—Jeremy Cross

Firm strengthens global fund finance practice with London partner hire.

DWF—Stephen Webb

DWF—Stephen Webb

Partner and head of national planning team appointed

mfg Solicitors—Nick Little

mfg Solicitors—Nick Little

Corporate team expands in Birmingham with partner hire

NEWS
Contract damages are usually assessed at the date of breach—but not always. Writing in NLJ this week, Ian Gascoigne, knowledge lawyer at LexisNexis, examines the growing body of cases where courts have allowed later events to reshape compensation
The Supreme Court has restored ‘doctrinal coherence’ to unfair prejudice litigation, writes Natalie Quinlivan, partner at Fieldfisher LLP, in this week' NLJ
The High Court’s refusal to recognise a prolific sperm donor as a child’s legal parent has highlighted the risks of informal conception arrangements, according to Liam Hurren, associate at Kingsley Napley, in NLJ this week
The Court of Appeal’s decision in Mazur may have settled questions around litigation supervision, but the profession should not simply ‘move on’, argues Jennifer Coupland, CEO of CILEX, in this week's NLJ
A simple phrase like ‘subject to references’ may not protect employers as much as they think. Writing in NLJ this week, Ian Smith, barrister and emeritus professor of employment law at UEA, analyses recent employment cases showing how conditional job offers can still create binding contracts
back-to-top-scroll