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ARTICLE · 11 MAY 2022

Re-visiting Undue Influence

Gatehouse Chambers
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The Culloden Estate is an area of land occupying circa 148 acres in Tobago.

United KingdomReal Estate and Construction
Priya Gopal
Priya Gopal

This article examines the recent decision in Nature Resorts Ltd v First Citizens Bank Ltd [2022] UKPC 10 where the Privy Council considered the application of the undue influence doctrine in the context of a mortgage over commercial property.

Background

The Culloden Estate ("the Estate") is an area of land occupying circa 148 acres in Tobago. The Estate is owned by Nature Resorts Limited ("NRL"). NRL's sole shareholder was Patrick Dankou ("Mr Dankou") who incorporated NRL for the purpose of buying the Estate and developing it as an eco-resort.

On 8 January 2008, a Mr Simon Paler ("Mr Paler") and Mr Christopher James ("Mr James") signed a share purchase agreement pursuant to which they agreed to purchase 75% of the NRL shares held by Mr Dankou for US$2.75m. US$275,000 was paid on the signing of the agreement and the balance was payable by 14 March 2008.

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