Supreme Court dismisses claim for damages against guarantor for security granted without cause.
Legislator summary
AI generatedThe Supreme Court dismissed the guarantor's claim for damages arising from a security granted without cause. The guarantor argued that the security was invalid due to the lack of a valid underlying debt, while the creditor maintained the security remained valid until formally revoked. The court ruled that the guarantor bears no liability for damages resulting from the security's existence when the underlying claim was never established, as the security itself did not constitute a wrongful act requiring compensation.
Legislator headnote
AI generatedSecurity Act 1993, Chapter 10, Section 1; Security Act 1993, Chapter 10, Section 2: A guarantor is not liable for damages to the creditor if the security was granted without a valid underlying claim, provided the security was subsequently revoked or the claim was never established.
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Kysymys velkojan vahingonkorvausvastuusta velalliselle aiheettomasti haetun turvaamistoimen johdosta.