ELS Legal has successfully settled a case brought by a company that owns care homes against a lender that had lent it money secured against a care home. ELS acted for the lender.
The company had claimed that the lender’s charges was unlawful and obtained an injunction to prevent the lender from selling the care home at auction.
The lender argued that its charges were entirely lawful and in line and did not fail the new test set out by the Supreme Court in Cavendish v Makdessi; Parking Eye v Beavis  UKSC 67 which is whether the clause is a secondary obligation which imposes a detriment which is out of all proportion to the legitimate interest of the innocent party.
The company eventually agreed to pay the lender what it owed them and the matter was successfully settled.
Richard Spector, Managing Partner at ELS Legal, said: “This was a case where we set out a strong and coherent case. Our client’s charges were reasonable and clearly set out in the contractual documents that the parties entered in to. We were pleased to resolve this so quickly to the satisfaction of our client”.
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