Barclays Bank UK Plc v Shaun Richard Terry
[2023] EWHC 2726 (Ch)
Barclays Bank UK Plc v Shaun Richard Terry & Anor
30 November 2023
[2023] EWHC 3113 (Ch)
High Court
Barclays accidentally removed 5,000 property liens. The court helped fix this, making sure everyone was notified and fairly compensated for any losses caused by the mistake. The court clarified the legal process for correcting the land registry records and making sure Barclays got their liens back.
Key Facts
- •Mistaken discharge of over 5,000 registered legal charges by Barclays Bank due to internal error.
- •Four lead defendants initially selected, reduced to Mr. and Mrs. Terry as representatives.
- •Barclays Bank paying for independent legal advice for all defendants.
- •Summary judgment granted to Barclays Bank for the Terry's property.
- •Properties categorized into parts 1-4 of a schedule, with a proposal for part 5.
- •Part 3 (936 properties) involves third-party interests and priority issues, forming the focus of this hearing.
- •Seven subgroups within Part 3 based on the specific orders sought (OO1A-OO9).
Legal Principles
Interpretation of undefined statutory words depends on context and purpose of provisions.
Cornerstone Telecommunications Infrastructure v Compton Beauchamp Estates [2002] UKSC 18, §§102 et seq
The Chief Land Registrar's duty to alter the Land Register under Land Registration Act 2002 Schedule 4, §2(2), should not conflict with restrictions preventing that alteration.
Land Registration Act 2002 Schedule 4, §2(2)
Standard form restrictions are governed by the Land Registration Rules 2003 Schedule 4 and may be triggered by a disposition, transfer, lease, charge or sub charge.
Land Registration Rules 2003 Schedule 4
Outcomes
Orders made rescinding discharges of charges for Part 3 properties.
Evidence of service satisfactory; claimant's priority claims justified (with amendments); unresolved objections addressed; declaration that orders not 'dispositions' preventing registration.
Order varied to permit service at alternative addresses for interested third parties.
Addresses held by Land Registry or alternative addresses deemed more likely to reach relevant decision makers.
Orders OO2-OO9 made granting priority to claimant in specified cases.
Claimant's analysis of priority rights accepted, with amendments made by agreement.
Orders include undertakings to compensate borrowers who prove loss due to mistaken discharge.
Addressing concerns raised by borrowers about losses.