Bank sues for loans
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by Mike Jewel • A Welsh haulier who claimed Barclays Bank killed his business by suddenly withdrawing his overdraft has been ordered to repay £311,864 to the bank in loans and interest. Barclays had sued Pencader-based Nigel Green and partner Yvonne Challis for the repayment of loans. The couple counter-claimed Lim in compensation for loss of earnings and profits, argu ing the loss of the overdraft facility forced their business to close.
The High Court in Cardiff heard that the couple had borrowed substantial sums to set up the reefer haulage business and believed they had the full support of Barclays. The business was slowly taking off when a new manager at the Llandovery branch withdrew their overdraft facilities.
It transpired that the previous manager had lent more money than he was authorised to, and that the arrangements were informally agreed and never set out in writing.
Ruling that Barclays had made a commercial decision it was perfectly entitled to make, Judge Michael Gibson said he could understand the couple's anger and frustration. But in the end, after a thorough investigation, the bank had made a commercial decision not to support the business. In law, said Gibson, the loans were repayable on demand.
After the hearing Green, who was ordered to pay £30,000 costs, said he would would sue the bank for giving bad advice.