Lloyds TSB Bank plc v Markandan & Uddin [2012] EWCA Civ 65, [2012] All ER (D) 62 (Feb)
Court of Appeal, Civil Division, Mummery, Rimer LLJ and Sir Mark Potter, 9 Feb 2012
On an application under s 61 of the Trustee Act 1925 (TA 1925), a solicitor who conducts a transaction by the book and acts honestly and reasonably in relation to it in all respects but still does not discover a fraud is likely to be treated mercifully by the court, although he might still be held in breach of trust for innocently parting with loan money to a fraudster.
Nicole Sandells (instructed by DLA Piper UK LLP) for the claimant. Christopher Aylwin (instructed by Patricks) for the defendant.
In August 2007, a mortgage-lending and deposit-taking business retained the defendant firm of solicitors to act for it, on the basis of the instructions in the Lenders’ Handbook for England and Wales, on a proposed loan to D to enable D to buy a freehold property. In September 2007, the defendants remitted the loan money, to what they believed
