Domicrest Ltd v Swiss Bank Corporation: QBD 7 Jul 1998

An English claimant sued a Swiss bank for a negligent mis-statement made in a telephone call between England and Switzerland. The Swiss banker represented that the transmission of a copy payment order by the bank to the claimant was a guarantee that payment would be made for the amount referred. The claimant relied on the representations to release goods in Switzerland and Italy on receipt of the copy payment order from the bank rather than waiting until it had been paid. The bank refused to pay on three copy payments orders in respect of goods which had been released from store in Switzerland and Italy.
Held: The place of the damage was in Switzerland and Italy, where the goods were released without payment, rather than England, where the Swiss purchaser would have paid the price. The reasons for that finding were (a) that it was by reference to the loss of the goods that the damages were pleaded; and (b) that the essence of the complaint was that the goods were released prior to payment. Where negligent misstatement is alleged, the law governing the action is that of the country where the statement was made. The tortious act occurs when the statement is made not when and where the statement is relied upon.


Times 16-Jul-1998, [1999] QB 548, [1998] EWHC 2001 (QB)




Lugano Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters 1988

Cited by:

CitedMazur Media Limited and Another v Mazur Media Gmbh in Others ChD 8-Jul-2004
Proceedings were brought in England. The respondents sought a stay, saying the company was subject to insolvency proceedings in Germany.
Held: Our domestic insolvency law was not applicable to foreign proceedings, and so could not be used to . .
Lists of cited by and citing cases may be incomplete.

Jurisdiction, Negligence

Updated: 19 May 2022; Ref: scu.80090