The claimants were involved in litigation, They took certain steps on the understanding that the respondents had had deposited with them substantial sums in accounts under binding authorities. The bank had written a letter upon which they claim they had relied.
Held: The letter could not be taken as a representation that the bank would hold any particular sum, and the bank could not expect it to be used as a representation that it would. The claimants had had reason to enquire as to whether the account was in fact being conducted in the way required, and had not done so. Claim Dismissed.
Judges:
The Honourable Mr Justice Andrew Smith
Citations:
[2003] EWHC 2138 (Comm)
Links:
Citing:
Approved – In re Multi Guarantee Company Ltd (No 2) ChD 31-Jul-1984
The court considered whether funds in an account operated in accordance with the rules were held on trust. Having considered the nature of a trust account, the court held: ‘In my judgment, it is quite impossible to read these rules as creating . .
Cited – Henry v Hammond KBD 1913
Channell J said: ‘It is clear that if the terms upon which the person receives the money are that he is bound to keep it separate, either in a bank or elsewhere, and to hand that money so kept as a separate fund to the person entitled to it, then he . .
Cited – King v Hutton CA 1900
‘The most compelling indicator for or against a trusteeship of an agent’s receipts is the nature of the account agreed to be kept by the agent with his principal. If, after each individual transaction or group of related transactions he effects for . .
Cited – Caparo Industries Plc v Dickman and others HL 8-Feb-1990
Limitation of Loss from Negligent Mis-statement
The plaintiffs sought damages from accountants for negligence. They had acquired shares in a target company and, relying upon the published and audited accounts which overstated the company’s earnings, they purchased further shares.
Held: The . .
Cited – Reeman and Reeman v Department of Transport; West Marine Surveyors and Consultants and Richard Primrose Ltd CA 26-Mar-1997
The purchaser of a fishing boat had relied on an incorrect safety certificate in respect of the vessel. He sought to claim in negligence.
Held: The object of the statutory scheme pursuant to which the certificate had been issued was to promote . .
Cited – Berg Sons v Adams 1993
Speaking of the judgments in Caparo, Hobhouse J said: ‘The speeches of both Lord Bridge and Lord Oliver analysed the criteria necessary for the existence of a duty of care. They both concluded that the criteria included the identification of a . .
Cited – JEB Fasteners Ltd v Marks, Bloom and Co CA 1981
Accountants prepared audited accounts knowing that the company was in financial difficulties, and the the accounts would be relied upon by the plaintiffs.
Held: The accountants owed a duty of care to the plaintiffs. They knew that they would . .
Cited – Axa Insurance Co Ltd v Swire Fraser Ltd CA 9-Dec-1999
Where an action was commenced before the new rules came into effect, but an application to strike out an action was issued and decided after they came into effect, that application could not be decided under the old rules. The new rules applied . .
Cited – Assicurazioni Generali Spa v Arab Insurance Group (BSC) CA 13-Nov-2002
Rehearing/Review – Little Difference on Appeal
The appellant asked the Court to reverse a decision on the facts reached in the lower court.
Held: The appeal failed (Majority decision). The court’s approach should be the same whether the case was dealt with as a rehearing or as a review. . .
Cited – Merrett v John RH Babb CA 15-Feb-2001
The applicant had been employed as a surveyor by a firm which had subsequently become insolvent. The firm’s run off professional indemnity insurance had lapsed. He had provided the negligent survey, and he was sued in person.
Held: He was . .
Cited – Henderson v Merrett Syndicates Ltd HL 25-Jul-1994
Lloyds Agents Owe Care Duty to Member; no Contract
Managing agents conducted the financial affairs of the Lloyds Names belonging to the syndicates under their charge. It was alleged that they managed these affairs with a lack of due careleading to enormous losses.
Held: The assumption of . .
Cited – Ministry of Housing and Local Government v Sharp CA 1970
Mr Sharp was the local land registrar with statutory duty to maintain the local registry, issuing certificates in response to search requests. A clerk who had been seconded by another Council to assist him negligently issued an inaccurate . .
Cited – South Australia Asset Management Corporation v York Montague Ltd etc HL 24-Jun-1996
Limits of Damages for Negligent Valuations
Damages for negligent valuations are limited to the foreseeable consequences of advice, and do not include losses arising from a general fall in values. Valuation is seldom an exact science, and within a band of figures valuers may differ without . .
Cited – Gran Gelato Ltd v Richcliff (Group) Ltd ChD 1992
The claimant wished to purchase an underlease from the first defendant. The claimant’s solicitors inquired of the second defendants, a firm of solicitors acting for the first defendant, whether any provisions in the headlease might affect the length . .
Lists of cited by and citing cases may be incomplete.
Banking, Professional Negligence
Updated: 03 February 2022; Ref: scu.186262