In a mortgage transaction, Redferns solicitors, acting
for both parties, released the mortgage advance before they had receipt
executed conveyances etc, thus constituting breach of trust.
Property subsequently found to be worth less than
estimated, and party which had advanced the funds demanded their return
(subject to credit for sale of mortgaged property)
Redferns argued breach was technical and loss would
have occurred in any event.
House of Lords found for Redferns.
Lord Browne-Wilkinson noted there are two fundamental
common law principles regarding award of damages:
1. Defendant’s wrongful act must cause damage complained
2. Plaintiff is to be put in same position he would
have been had he not sustained the wrong.
These ‘principles are applicable as much in equity as
at common law’