In Shukla v St James Bank and Trust Co Ltd [2026] EWHC 851 the equitable doctrine of clogs against the equity of redemption resulted in a complete rewriting of a bargain struck between sophisticated commercial parties. The case illustrates: (i) the difficulties in applying the doctrine to modern financing arrangements; and (ii) why sustained criticism of the doctrine is well-founded.
26 JUL 2026This article considers the development of the doctrine of good faith since Leggatt J’s historic decision in Yam Seng Pte Ltd v International Trade Corp Ltd [2013] EWHC 111 (QB). The authors focus on what recent cases tell us about: (i) when such a duty will be implied into a contract; (ii) the basis for implication; and (iii) the content of the duty.
6 MAR 2025