Bradford & Bingley Plc v Rashid

Bradford & Bingley plc, a mortgagee, sought to recover a debt from Mr Rashid, who had fallen into arrears. The parties exchanged correspondence in 2001, in which Mr Rashid acknowledged the debt, although he sought to negotiate a repayment plan. The mortgagee issued proceedings in 2003, which Mr Rashid defended by relying on limitation. The mortgagee argued that Mr Rashid's correspondence amounted to an acknowledgement of the debt, which restarted the limitation period under the Limitation Act 1980. The court below held that the correspondence was protected by the without prejudice rule and therefore inadmissible. The mortgagee appealed. The House of Lords held that Mr Rashid's correspondence amounted to an acknowledgement of the debt, which restarted the limitation period, and that it was not protected by the without prejudice rule. The Lords disagreed on the reasons for this conclusion, but were unanimous that the mortgagee's appeal should be allowed.