ROYAL Bank of Scotland has failed to overturn a Court of Session verdict that it misrepresented a land valuation in order to secure a £300,000 personal guarantee from two property developers in the wake of the financial crash.
The bank faces a £100,000 bill for damages to Glasgow-based Ian McDonald and James O’Donnell, on top of the estimated £400,000 total costs of a lengthy court action aimed at justifying the bank’s conduct in early 2009.
Three Appeal Court judges have backed the June 2013 ruling against RBS by Lord Malcolm, who described the bank’s action against the developers as “a case study of the causes and consequences of the property crash”.
Mr McDonald said yesterday that law firm MBM Commercial had told RBS in February 2010 that the personal guarantee was unenforceable because of a clearly flawed site valuation. READ MORE