Litigation Case study 1: Defending a Borrower’s Rights 

Bridging Loan Dispute: Defending a Borrower’s Rights 

Chan Neill Solicitors LLP acted in a complex, high-value, multi-party dispute concerning bridging finance, secured lending, and contested repayment allocations involving a London-based family home. The matter arose against a backdrop of significant financial and business pressures for a restaurateur. Following bankruptcy, director disqualification, and substantial business liabilities, the family property had been placed into trust and refinanced through a series of secured lending arrangements, personal guarantees, and bridging loan facilities. Over time, additional borrowing was undertaken to stabilise the family’s financial position. 

The dispute crystallised after a substantial repayment of £1 million was made to the lender, with the intention of discharging the secured borrowing against the family home. Rather than applying the funds solely to the secured loans over the property, the lender allocated the payment across a range of unsecured debts and facilities involving third parties, relying on contractual provisions granting discretion over payment allocation. 

Chan Neill Solicitors acted for the Defendant in challenging the lender’s position, advancing arguments rooted in both contract and equity. Central to the defence was the contention that the lender’s approach amounted to an unlawful interference with the borrower’s equity of redemption, raising questions as to whether contractual discretion had been exercised in a way that improperly prevented the release of security over the property. Issues of privity of contract and the propriety of allocating funds toward liabilities involving third parties also formed part of the dispute. 

Alongside substantive legal arguments, the matter involved extensive procedural and disclosure disputes. Led by the Head of Litigation, Gideon Rix, Chan Neill Solicitors resisted broad disclosure requests concerning unrelated third-party arrangements while pressing for greater transparency regarding the lender’s internal decision-making and rationale behind the allocation of funds. The Litigation Team also put forward robust pleadings, amendments, and negotiated substantial extensions relating to witness evidence. 

Over the course of CNS’ involvement in these complex proceedings, CNS supported productive settlement discussions, helping facilitate negotiations while protecting the client’s position through procedural safeguards and consent arrangements pending resolution. This matter demonstrates CNS’s experience in navigating sophisticated property and finance disputes involving secured lending, contractual interpretation, equitable principles, and strategic litigation management in high-value proceedings. 

At Chan Neill Solicitors LLP, our Litigation team advises individuals, businesses and international clients on a wide range of commercial, property and cross-border disputes.

With extensive experience in high-value and complex litigation, we help clients protect their rights and achieve practical, commercial outcomes. We advise clients in English, Mandarin and Cantonese. Contact our Litigation team for early legal advice to help resolve your dispute effectively.