A property developer has won a landmark case against a major bank after discovering it had used his development as security for loans extended to builders without his knowledge.
Peter Jewson began a joint venture with Indigo Star Homes to develop barn conversions at Farmoor Court, as he knew John and Philip Barwick of Indigo.
Mr Jewson, 76, of Farmoor, offered the barns as security for a loan of £1.25m to Indigo from the Clydesdale Bank in Oxford, which was used to carry out the work.
It was only when he sold the first property he realised that his liability for the bank loan was not falling.
He said: "I put £540,000 from the sale in the bank, but my liability only fell to £1.23m."
At the High Court, Judge Roger Kaye QC, ruled Mr Jewson did not owe the Clydedale Bank the additional £540,000 it had extended to the Barwicks and that it should pay his legal costs, amounting to £90,000.
Clydesdale Bank spokes- man Ewan McCulloch said: "We are currently considering the judgement."
Philip Barwick later told the Oxford Mail: “The company was owned by my brother at the time.”
John Barwick could not be contacted for comment.
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