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The difficulties in proving guarantees were signed (Lynch v Cadwallader)

The difficulties in proving guarantees were signed (Lynch v Cadwallader)
Published on: 03 March 2021
Published by: LexisPSL
  • The difficulties in proving guarantees were signed (Lynch v Cadwallader)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Restructuring and Insolvency analysis: In Lynch v Cadwallader, the court held that on the evidence before the court, the guarantee had not been signed by the guarantor or the witness despite the fact that the expert evidence concluded that the witness’s signature was authentic. This was because there was clear evidence from the guarantor that they had not signed the guarantee, but the bank did not call any direct evidence to contradict this. The court further held that it was not sufficient that the bank had obtained a change of carriage order in respect of the bankruptcy petition against the guarantor to establish that the issue of whether they are a creditor was res judicata. Having considered the wording of the judgment where the change of carriage was granted, it was clear that any dispute as to whether the guarantee was signed was not decided at that hearing. Written by Claire Thompson, barrister at Enterprise Chambers. or take a trial to read the full analysis.

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