Guernsey Legal Resources

  The respondent was given leave by the court to register its claim against the applicant for damages of £325,000, prior to the giving of judgment, in the Livre des Hypothèques, Actes de Cour et Obligations, pursuant to s.6 of the Law Reform (Miscellaneous Provisions) (Guernsey) Law 1987. The proceedings were stayed by consent to allow the parties to pursue arbitration, by which time the claim was valued at £380,000 plus interest and costs. The applicant, the owner of realty valued at over £3.6m., wished to borrow £2.1m. from a lender who required a first charge over the applicant’s property and, to give a new bond priority over the respondent’s claim, the applicant applied under s.7(c) of the Law for variation of the leave to register so as to change the priorities. It maintained that its assets were sufficient to provide security for the respondent’s claim, especially as £140,000 was already held by its advocates in relation to the claim. The respondent opposed the application.