Legislator Case Law & Legislation
KKO 1795/1998 AI generated

Supreme Court dismisses claim for damages against guarantor for security granted without cause.

Case Number KKO 1795/1998
Court / Authority
Jurisdiction Finland (FI)
Decision Date
Outcome Dismissed

Legislator summary

AI generated

The 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 generated

Security 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.

Keywords

AI generated
guarantor liability security without cause damages claim underlying debt security revocation

Cited Legislation

AI generated
Security Act 1993, Chapter 10, Section 1
Security Act 1993, Chapter 10, Section 2
AI generated

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Full text

Kysymys velkojan vahingonkorvausvastuusta velalliselle aiheettomasti haetun turvaamistoimen johdosta.