Clark v Lucas Solicitors serves as a timely warning for conveyancing solicitors say Mark Sefton & Oliver Radley-Gardner
Conveyancing solicitors acting for residential developers should be aware of the cautionary tale told by Clark v Lucas Solicitors LLP [2009] EWHC 1952 (Ch). Adrian and Heather Clark were the purchasers of a house on a new residential development in Monmouthshire. The purchase price was £560,000. The seller was the developer, a company called Gainsborough Homes Ltd.
The overall funding for the development had been provided in the main loan facility from Natwest Bank plc, but in part also by some lending from an individual called Michael Kenny. The Natwest Bank naturally had a first charge over the whole of the development site to protect the bulk of the finance, and Mr Kenny had a second charge, also over the whole of the site, to protect his own financial input. Both of these were all monies charges, in the sense that they provided the lenders with security for the full amount of whatever might be owing to them from Gainsborough at any particular point in
