£494,777 damn .
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gainst SoIly Davis
• A claim for £494,777 was made in the High Court on Wednesday by Anglo-Israeli Bank Ltd, of Bow Bells House, Broad Street, London, against transport contractor, Mr. Solly Davis, of Amos Grove, N14, and his company, Charles Poulter Ltd, of 338 The Highway, El, who, the bank said, had failed to fulfil a guarantee given on bank overdraft.
Mr. Muir Hunter QC, counsel for Mr. Davis, told Mr, Justice Geoffrey Lane that Mr. Davis and his three brothers ran 14 transport companies in what could loosely be described as the "Davis Group," one or more of the brothers having an interest in each company. But Mr. Solly Davis and his son Ronald were the sole owners of Charles Poulter Ltd.
In 1963 the four brothers had given the Anglo-Israeli Bank a number of guarantees covering overdrafts for all the companies, to a limit of £250,000. In the years following the brothers were not getting on well and the combined overdraft had become £486,000. The bank called in the overdraft. Mr. Solly Davis had paid off the Poulter's overdraft of £616 but the other brothers had come to a new accommodation with the bank and reconstructed the loan basis by issuing de
bentures. This Mr. Sally Davis refused.to do.
Following this, said Mr. Hunter, there was a "further falling out of the parties" and in January 1968 receivers were appointed for all the companies of the Group except Charles Poulter Ltd. The bank was now claiming the amount of the overdraft of the other companies from Mr. SoIly Davis and Poulters on the basis of the joint guarantees, plus about £8,000 interest.
Mr. Davis's defence was that on April 24 1967 he had written to the bank instructing them to discontinue his guarantee. He maintained that the other companies had sufficient assets to satisfy the claim as at April 24 1967 and that if there were further overdrafts after that date he was not responsible.
But, said Mr. Hunter, the judge was being asked at this stage to decide only two preliminary issues: whether Mr. Davis sent, and the Bank received, the letter of cancellation of April 24 1967; and what effect, if any, this letter had upon the legal liability of Mr. Davis and his company.
It could be, said Mr. Hunter, that decision on these matters might settle the issue or, at any rate, shorten the main action. Mr. Sally Davis said in evidence that the 14 companies were not actually a "Group"; they had only banked together. After he had paid off the £616 overdraft for Poulters he wanted to break off connections with the Anglo-Israeli Bank and he opened an account with the Midland Bank in September 1966.
"So I decided with my son to close the account," said Mr. Davis. On April 24 1967 he had sent the letter closing the account and cancelling the guarantees. He had received no reply.
The case continued on Thursday.