A stolen cheque was endorsed in blank, and paid through an account opened for that purpose. It had been crossed ‘A/C PAYEE ONLY’ The cheques was paid in, and the money authorised for payment by HSBC. The banks had to apportion responsibility. The paying bank (HSBC) sought to apply Middle Temple, making the collecting bank (BPE) entirely responsible.
Held: HSBC was entitled to the indemnity sought from the collecting bank. HSBC was entitled to an indemnity or damages for breach of warranty as a matter of law, irrespective of whether either HSBC or BPE acted ‘without negligence’ for the purpose of s.4 of the 1957 Act or s.80 of 1882 Act.
Judges:
The Honourable Mr Justice Gross
Citations:
[2003] ESHC 1113 (Comm), Gazette 03-Jul-2003
Links:
Statutes:
Bills of Exchange Act 1882 80, Cheques Act 1957 4
Jurisdiction:
England and Wales
Citing:
Approved – The Honourable Society of the Middle Temple v Lloyds Bank plc and Another QBD 8-Feb-1999
Where a cheque marked ‘a/c payee only’ had been stolen, and an English clearing bank collected it as agent for a foreign bank not acting for the payee, that bank was liable for the misrepresentation involved in the presentation. Where a bank asks . .
Lists of cited by and citing cases may be incomplete.
Banking
Updated: 07 June 2022; Ref: scu.182609
