Parker-Tweedale v Dunbar Bank (No 1) [1991] Ch 12

Court of Appeal

Basic Facts: Parker Tweedale’s family home was sold under a mortgage. The sale price was less than what it was resold for, and Mr. P sought to invalidate the sale.

Held: The court concluded that a beneficiary under a trust has no direct right of action against a mortgagee for sale unless they have a specific interest registered.

Nourse LJ held:

• The duty to obtain a reasonable price is recognized in equity, but it is limited to the relationship between the mortgagee and mortgagor.

• The duty does not extend to other parties, such as those holding the mortgage on trust.