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Portsmouth Holdings Ltd v JL Homes Ltd Anor

Ch D, 4 October 2012

Court: High Court
Paul Adams

A mortgagee brought possession proceedings against a corporate mortgagor and the proceedings were settled on terms whereby if the mortgagor did not pay a certain sum by a certain date the mortgagee would be entitled to call for a transfer of the mortgaged properties.  The settlement was embodied in a Tomlin order.  The mortgagor did not pay, and the mortgagee made an application for the agreement scheduled to the Tomlin order to be enforced by way of an order requiring a transfer of the properties.  The mortgagor defended the application on the ground that the settlement agreement had been signed without its authority.  The mortgagee, represented by Paul Adams, maintained (i) that the mortgagor was estopped from denying the validity of the settlement agreement, (ii) that the settlement agreement had been executed with the actual or apparent authority of the mortgagor, and (iii) that, alternatively, the mortgagor had subsequently ratified the agreement.  Lesley Anderson QC, sitting as a Deputy, granted the mortgagee's application to enforce the agreement.

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