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19 Pages

SMITH vBANK

Outer House:
WithSCOTLAND Mumford Smith Scotlantfl

This case began as a joint action by Kathleen Smith and Elizabeth Mumford, taken against the Bank of Scotland. The two women had entered into cautionary contracts with the bank, agreeing to grant a standard security over their matrimonial home, which each owned jointly with their spouses, in return for an overdraft being facilitated for their husbands businesses. Both claimed that they had entered into the agreements as a result of false reassurances made by their husbands which blinded them to the full extent of the obligation which they had entered into.