David Farnell

Practice Areas

David is a financial services disputes solicitor with more than 30 years’ experience, both in private practice and in-house (at RBS and CYBG). He has acted for many banks and other commercial lenders, principally those engaged in asset finance.

David often helps recoveries managers or in-house counsel to formulate an early strategy for avoiding litigation. Such advice may concern an individual facility or lease, multiple agreements or portfolio management.

When litigation is required, David pursues the process best suited to achieving the client’s desired outcome quickly and cost-effectively, using forms of ADR where appropriate. Common issues that David deals with include civil fraud, contractual termination, cross-border/jurisdiction, delivery-up or preservation of goods, enforcement of related security, guarantees and indemnities, quality of goods and services, broker/alleged secret commission, title disputes, liens and wrongful interference with goods.

He also takes action to enforce settlement agreements and judgments, both in England and overseas.

Career

David qualified as a solicitor in 1993. Prior to joining Keystone in 2024, David worked at the following firms:

Shoosmiths

Addleshaw Goddard

Ford & Warren (now Weightmans)

Experience

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.

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.

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.

Negotiated a settlement between two lessors with competing title claims over undelivered construction equipment, following the supplier’s appointment of administrators.

Successfully defended a misrepresentation claim against a lessor arising from the contra settlement of VAT invoices for the supply of commercial vehicles.

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).

Prepared and delivered bespoke fraud training to the Asset Finance team of a bank based in Northern Ireland, addressing all aspects of its operations.

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).

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.

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).

Negotiated the settlement of a multi-million pound dispute concerning several claims against the client Estate and its associated businesses, including two limited companies and 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.

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.

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.

Defended and settled a multi-million-pound breach of trust claim against several asset management companies, following misconceived allegations of fraud against their common director.

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.

Disposed of a £1.5m finance brokerage dispute without the need for court proceedings.

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).

Advised on various corporate and personal guarantee claims on behalf of banks, in circumstances where the corporate borrower had entered an insolvency procedure.