Description
A mortgage lender was entitled to the return of mortgage moneys that a firm of solicitors had paid to fraudsters in breach of the terms of its instructions. The claim was advanced on the basis of breach of trust, breach of contract and in tort. The conduct of the principal indicated that he had little knowledge of conveyancing law and the firm was naive and had not maintained good professional standards. The firm should have been put on guard by the fact that it was instructed by purchasers in respect of three properties all using the same firm of solicitors; that there had been unusually large deposits and exchange of contracts was complete and completion was due on the same date. Even if the firm was not in breach of duty it was in breach of trust. The firm was not entitled to relief under s.61 of the Trustee Act. There was no contributory negligence by the bank or the mortgage packaging process which did not amount to imprudent lending.
