Lloyd’s TSB Bank v Hayward
Citation: EWCA Civ 466
Nature of case:
Lloyd’s appealed against the decision that Hayward was not liable on guarantees he had given. The Court of Appeal was required to consider an agreement made between Lloyd’s and the principal debtor, and whether there was a subsequent variation of that agreement which had the consequence of discharging Hayward from his guaranteed liabilities to Lloyd’s. Dismissing the appeal, the court found that there was a relevant renegotiation and alteration of the loan agreements to the potential detriment of Hayward. Hayward was accordingly released from his liabilities under the guarantees by reason of the rule in Holme v Brunskill.
