Linotype-Hell Finance Ltd v Baker

JurisdictionEngland & Wales
JudgeLORD JUSTICE STAUGHTON
Judgment Date22 September 1992
Judgment citation (vLex)[1992] EWCA Civ J0922-7
CourtCourt of Appeal (Civil Division)
Docket Number92/0870
Date22 September 1992
Linotype-Hell Finance Limited
Respondents
and
David Garland Baker
Appellant

[1992] EWCA Civ J0922-7

Before:

Lord Justice Staughton

92/0870

IN THE SUPREME COURT OF JUDICATURE

COURT OF APPEAL (CIVIL DIVISION)

ON APPEAL FROM THE HIGH COURT OF JUSTICE

QUEEN'S BENCH DIVISION

(HIS HONOUR JUDGE FALLON Q.C.)

Royal Courts of Justice

MR. MARTIN STRUTT (instructed by Messrs. Bosworths, East Molesey, Surrey) appeared for the Appellant (Defendant).

MR. GEORGE NEWSOM (instructed by Messrs. Willans, Cheltenham, Gloucester) appeared for the Respondents (Plaintiffs).

LORD JUSTICE STAUGHTON
1

On 16th January 1989, or alternatively on 1st March 1989, Lease Management Services Limited agreed to hire some Linotype equipment to Waterfront Studios Limited. The interest of Lease Management has been assigned to Linotype-Hell Finance Limited.

2

It is said that the defendant, David Garland Baker, signed an authority to execute a guarantee of the obligations of Waterfront Studios under that agreement, and a guarantee was executed in purported pursuance of that authority. Then Waterfront Studios went into liquidation with a considerable deficiency. So Linotype-Hell Finance Limited sued Mr. Baker under the guarantee. They claimed some £61,000 for unpaid rentals until the end of the agreement, which was due to last five years, with a very modest discount of 5 per cent for advance payments. They also claimed delivery up of the goods, which it seems are in the possession of Mr. Baker.

3

The defence was that Mr. Baker had never signed the authority to execute a guarantee. Furthermore, there was a point that it referred to a lease of 16th January 1989 and not to one of 1st March 1989. There was also said to be a counterclaim; and it is said that to award the plaintiffs £61,000 together with delivery up of the goods contains an element of double recovery, because they would receive rental for the whole period of the agreement but would have the goods returned to them forthwith. Mr. Newsom has an answer to that. He points to clause 10(3) of the lease agreement which says that when the goods are returned they must be sold and credit given for the proceeds of sale.

4

In Order 14 proceedings the district judge gave unconditional leave to defend. There was an appeal and His Honour Judge Fallon Q.C. gave judgment...

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