David Farnell

David advises on complex, high-value disputes involving contractual breaches, multi-party litigation, and claims in sensitive commercial or familial contexts, using negotiation, litigation, and settlement strategies to resolve matters efficiently.

• Negotiated the settlement of a multimillion-pound dispute concerning several claims against the client estate and its associated businesses, including two limited companies and an unincorporated association (alleged partnership and breaches of duty, unfairly prejudicial corporate conduct and an Inheritance Act claim). Fraught inter-familial relationships required sensitivity in negotiations.
• Provided valued support to an EU-based lawyer in advance of a settlement meeting, which resulted in the recovery of tens of millions of pounds from a State-owned entity, following the threatened enforcement of multiple judgments.
• Resolved an inter-company dispute between directors and shareholders involving allegations of unfair prejudice and quasi-partnership.
• Successfully mediated a professional negligence claim by a law firm against its accountants, recovering a substantial settlement in respect of overpaid tax.
• Recovered deferred consideration payments due to the seller of a retail business, following a default by the purchaser.
• Negotiated the resolution of a protracted partnership dispute.

David represents banks and financial institutions in contentious and non-contentious matters, advising on enforcement, recovery, loan default remedies, and risk mitigation related to secured and unsecured credit facilities.

• Advised a bank regarding recoveries action following a borrower’s default in relation to a series of secured term loans, two of which were government-assisted (Coronavirus Business Interruption Loans Scheme) and supported the bank in making a £5m guarantee claim to HM Secretary of State.
• Disposed of a £1.5m finance brokerage dispute without the need for court proceedings.
• Supported a bank’s winding down of a vehicle stocking finance book, including the drafting of conditional waiver documents and swift action to terminate individual loan facilities, seize vehicle stocks and litigate to recover shortfall debts from borrowers and/or guarantors.
• Advised on various corporate and personal guarantee claims on behalf of banks, in circumstances where the corporate borrower had entered an insolvency procedure, obtaining judgments enforced by way of charging orders, or negotiating settlements secured by voluntary charges, in appropriate cases, depending on the lender’s regulatory status).
• Advised an overseas private investment bank in relation to several connections in its portfolio, concerning the enforceability of multi-million pound loan facilities and related security in the UK.
• Assisted a payment services provider with a breach of contract claim.
• Acted for a lender in a referral to the Upper Tribunal (Tax & Chancery) of a decision by a financial services regulator.
• Pursued myriad guarantee claims, extending to obtaining judgments enforced by way of charging orders (or negotiating settlements secured by voluntary charges, in appropriate cases, depending on the lender’s regulatory status).

David advises financial institutions and corporates on fraud prevention, investigation, and litigation, drawing on experience in misrepresentation, recovery actions against third parties (particularly in cases involving conversion fraud), and leading industry fraud training initiatives.

• Recovered c£1m from a commercial broker pursuant to an introduction agreement, following the discovery of a major fraud involving the lender’s customer.
• Advised a lessor about its £1m claim against third parties for fraudulent misrepresentation, inducing the lessor’s purchase of specialised salt machinery.
• Acted for an online investment platform in pursuing monies withdrawn by a customer from their account, in circumstances where the customer alleged fraud by an intermediary.
• Prepared and delivered bespoke fraud training to the asset finance team of a bank based in Northern Ireland, addressing all aspects of its operations.
• Finance & Leasing Association (“FLA”) approved trainer. For several years, David has written and presented quarterly fraud training to FLA members. The course addresses all aspects of members’ operations and includes real case examples, group exercises and discussions, with thought leadership on fraud prevention and effective legal action.

David acts for asset finance providers in enforcing security, recovering leased or financed equipment, and resolving priority, title and default disputes involving a wide range of asset types and industries.

• Obtained delivery-up orders in relation to various items of plant and machinery, following the termination of multiple hire purchase agreements with several companies within the same group, resulting in the recovery of the assets and successful negotiations with the companies and their directors, who had given personal guarantees.
• Successfully defended a misrepresentation claim against a lessor arising from the contra settlement of VAT invoices for the supply of commercial vehicles.
• Negotiated a settlement between two lessors with competing title claims over undelivered construction equipment, following the supplier’s appointment of administrators.
• Resolved a title dispute between a lessor and the manufacturer of construction plant following the lessee’s appointment of administrators.
• Assisted a group of lessors in recovering their assets from a common lessee, which had appointed administrators (the value of the recoveries amounting to several million pounds).
• Mediated a tri-partite satisfactory quality dispute (lessor, lessee and supplier of high specification plant and machinery goods), achieving a settlement enabling the lessor to recover his capital balance, interest and costs.
• Assisted a lessor in assessing and disposing of a £1.3m claim arising from the supply of robotic milking equipment (declining a request for a standstill agreement).

David advises lenders on invoice finance and receivables-based funding, handling facility enforcement, priority disputes, and recovery strategies including fraud risk and counterparty defaults.

• Advised an invoice finance lender about a third-party manufacturer’s purported charge over receivables (pursuant to a distribution agreement between the third party and the lender’s customer; the case settled on terms that were favourable to the lender).
• Pursued a £3m invoice fraud claim against a factoring company’s customer, resulting in a settlement.
• Pre-empted a customer’s alleged breach of contract claim by terminating a £0.6m invoice finance facility and forcing a negotiated settlement.
• Recovered £0.7m from a local authority in settlement of a bank’s assigned invoices pursuant to an invoice discounting facility, despite allegations of fraud against the assignor.
• Obtained Global Substitution Orders for a debt management company and its clients, following a series of asset sales to offshore companies, involving some 95,000 claims.

David advises on strategic lending and investment transactions, focusing on complex loan structures, guarantees, and funding arrangements tailored to support business growth, restructuring, or liquidity events.

• Advised a bank regarding recoveries action following a borrower’s default in relation to a loan facility supported by HM Government.
• Delivered advice regarding a secured loan facility worth tens of millions of pounds in anticipation of conduct by a third party amounting to a potential event of default.
• Successfully pursued a £25m claim arising from a series of loans between offshore trust companies (with parallel court proceedings in England and the British Virgin Islands).
• Defended and settled a multimillion-pound breach of trust claim against several asset management companies, following misconceived allegations of fraud against their common director.
• Assisted an online investment platform in defending a claim for compensation following an investor’s acquisition and disposal of shares on the recommendation of a third party suspected of fraud.
• Acted for a high net worth individual lender in his claim against a corporate borrower for the payment of default interest, involving an allegation of penalty in relation to the relevant contractual provision.

David advises on a range of financial services matters, with a focus on default and termination of contracts, principally for clients in the asset-based lending sector, which is largely unregulated. His expertise extends to aspects of regulatory compliance, risk management, and strategic issues for banking and investment clients, particularly in relation to thematic claims or group litigation.

• Acted for numerous banks and finance houses, in relation to their asset finance recoveries matters:
  • advising them in relation to termination notices and demands, pursuing claims for the delivery-up of goods and moneys due from hirers and guarantors;
  • resolving title disputes and pursuing claims against third parties following wrongful interference with goods (commonly conversion fraud and false liens).
  • resolving tri-partite disputes between clients, their customers, and suppliers about satisfactory quality complaints;
  • dealing with customers’ administrators and liquidators, whose statutory duties and powers conflict with clients’ proprietary rights to the immediate possession of leased goods.
• Acted for several factoring, invoice discounting, and trade finance providers in relation to the enforcement of their facilities in default cases:
  • advising them about their contractual rights;
  • assisting them to recover debts from their client-borrower’s customers;
  • assisting them with collect-outs in cases of client-borrower insolvency;
  • pursuing claims against directors and third parties for invoice fraud;
  • pursuing claims against guarantors.
• Acted for several banks in relation to their secured lending facilities:
  • advising them in relation to their contractual rights;
  • reviewing their security and assisting them with enforcement;
  • providing advice and assistance in relation to lending supported by HM Government, such as the Coronavirus Business Interruption Loan Scheme, particularly in relation to the submission of a guarantee claim.
• Acted for several banks and finance houses in relation to broker/introducer agreements and inward claims by companies and individuals for damages based on allegations of secret commission.
• Acted for an overseas private investment bank in relation to a series of secured loans and related security, advising the bank about the enforceability of the loans, which concerned cross-border issues.
• Acted for payment service providers in relation to claims made against them.
• Acted for an investment platform in relation to an investor’s claim that her acquisition and disposal of shares had been induced by a third-party’s fraud.
• Acted for an offshore company in pursuing a £25m claim arising from a series of corporate loans (with parallel court proceedings in England and the British Virgin Islands).
• Acted for several asset management companies and their common director in a multimillion-pound breach of trust claim, following misconceived allegations of fraud.
• Acted for a credit union in relation to several matters concerning Consumer Credit Act 1974-regulated loans.
• Acted for a building society in defending a claim by a group of borrowers, alleging breaches of their buy-to-let mortgage terms and conditions concerning interest rate rises.

David advises on risk and recoveries aspects of in-house legal practice, supporting senior management with related compliance issues, drawing on significant experience within leading financial and corporate organisations.

• Advised on contracts, customer services and complaints/referrals to the Financial Ombudsman Service.
• Advised on delinquent accounts and recoveries.
• Managed litigation and supervised solicitors.
• Advised on fraud policy, and staff training.

Recognised in The Legal 500 for Litigation 2026

Recognised in The Legal 500 for Banking Litigation 2025

Recognised in The Legal 500 for Commercial Litigation 2025