A SCOTTISH property developer is considering launching a £3 million claim for loss of profits against RBS after the UK’s highest court ruled in his favour in a long-running legal row.
Derek Carlyle had been in dispute with the bank over a verbal agreement over loans to buy and develop two plots in the grounds of Gleneagles.
The agreement with the hotel included a buy-back clause requiring that the plots be fully developed within a certain timescale to ensure the homes were completed before the 2014 Ryder Cup.
Although £1.4 million funding was provided for the purchase of the plots, RBS did not provide the expected finance for their development. The bank later repossessed the plots and sold them on for £900,000.
Carlyle originally won a Court of Session decision in 2010 from Lord Glennie, who found the bank had a contractual obligation to provide an additional £700,000 of development funding on top of the purchase loan.
That ruling was later overturned on appeal but the Supreme Court has now said the original decision should stand.
Carlyle’s solicitor, Cat MacLean, of MBM Commercial, said: “This is a vindication of not only Derek’s position, but also gives hope to many individuals and businesses in the property and other sectors who have suffered at the hands of banks.
“It sends a message that banks are not beyond censure or free to do what they choose, regardless of the human consequences – they will face legal redress in the end.”
In a statement RBS said: “It has been clear throughout that this case turns on its particular facts, and this is very much reflected in the judgment. We accept the Supreme Court’s finding that the Lord Ordinary’s decision should not be overturned.”
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