Home saved by judges

JUDGES have come to the rescue of an elderly East Preston couple threatened with homelessness after putting their house up as security for their son s 80,000 loan.

Alan and Doris Stanley, of Normandy Lane, risked losing their seaside retirement home after agreeing to guarantee the loan taken out by their former policeman son, David, from real ale brewers Greene King.

David had bought the lease of the Dog and Duck pub at Purley, Surrey, but, when he ran into financial difficulties, the brewery tried to take possession of his parents home.

But the couple, both in their late 70s, can breathe a sigh of relief after three Appeal Court judges rejected the brewery s bid to enforce the guarantee.

Instead, the court upheld a Brighton County Court decision last December to refuse Greene King a possession order. At that hearing, Judge Anthony said David, 47, had exerted "undue influence" over his parents before they agreed to guarantee the loan.

Lord Justice Jonathan Parker, who heard the brewery s appeal with Lord Justice Tuckey and Mr Justice Crane, told the court: "Mr and Mrs Stanley s son painted a materially false impression to them as to the risks they would run if they went ahead, and accepted the charges."

The couple had saved all their lives to move to their dream cottage after beginning married life in a Croydon council house.

The judge added that Greene King, who last week declared pre-tax profits of 32m, should have taken it upon themselves to inform the couple of the "gratuitous risk" they were undertaking.

Mr Stanley, a Second World War Royal Navy veteran who was stung by the Robert Maxwell pension scandal, and his wife had only agreed to the loan because they didn t believe their home would be "under threat".

David, a former CID officer and successful businessman specialising in running pubs, enjoyed expensive holidays and sent his children to top private schools while his business boomed.

But in February, 1999, he entered into an individual voluntary arrangement (IVA) with his creditors, including Greene King, and finally settled his debts in April, 2000.

Lord Justice Parker accepted Greene King s plea that their agreement to the IVA did not prevent them from seeking possession of Mr and Mrs Stanley s home.

But the brewery s appeal was, nevertheless, dismissed and it was ordered to pay the couple s legal costs.