A banker to whom money is paid to the credit of his customer’s account at his customer’s request, in mistake of fact, is not in a better position than his customer would be, and is not entitled to hold it if his customer would under the circumstances have been bound to refund it had it … Continue reading Kerrison v Glyn Mills and Co: HL 4 Dec 1911
The solicitors had made use of the online facility provided by the appellant Law Society to verify the bona fides of a firm of solicitors acting for a third party to a transaction. Relying upon the information, they suffered losses, and claimed in negligence. The Law Society now appealed against a refusal of its request … Continue reading The Law Society of England and Wales v Schubert Murphy (A Firm): CA 25 Aug 2017
The court was asked whether bankers have complied with the re-delivery requirements of repo transactions in relation to cargoes of metal by delivering endorsed warehouse receipts to their counterparty, notwithstanding that (i) there is uncertainty as to the existence of the metal and (if it exists) the bankers’ title to it, and (ii) the warehouse … Continue reading Mercuria Energy Trading Pte Ltd and Another v Citibank Na and Another: ComC 22 May 2015
Although a customer always had a clear duty to inform its bankers of any forgery of which it was aware insofar as it related to dealings with the bank, that duty did not operate when the knowledge of the customer was only constructive and not actual. In this case the bank had become concerned and … Continue reading Price Meats Ltd v Barclays Bank Plc: ChD 30 Nov 1999
The court emphasised that a search warrant is a potentially serious invasion of the liberty of the subject, and a gross invasion of privacy. Lord Widgery also drew the distinction between authorising the obtaining of material as permitted by statute, and ‘a fishing expedition in the hope of finding some material upon which the charge … Continue reading Williams v Somerfield: 1972
Counsel for the appellant had submitted that the damages ought to be the difference between the value of the estate as stated by the valuers and the real value at that time. This submission was rejected. Held: The argument was rightly rejected. Citations: (1891) 64 LT 674 Cited by: Cited – Hedley Byrne and Co … Continue reading Scholes v Brook: 1891
The courts of equity have recognised that a fiduciary relationship can exist ‘in almost every shape’. Judges: Field J Citations: (1885) 52 LT 646 Cited by: Cited – Hedley Byrne and Co Ltd v Heller and Partners Ltd HL 28-May-1963 Banker’s Liability for Negligent Reference The appellants were advertising agents. They were liable themselves for … Continue reading Plowright v Lambert: 1885
A party is not exempted by his contract from his own negligence ‘unless adequate words are used.’Scrutton LJ said: ‘For the present purposes a rougher test will serve. In construing an exemption clause certain general rules may be applied: First the defendant is not exempted from liability for the negligence of his servants unless adequate … Continue reading Rutter v Palmer: 1922
There was an injury to the wife, from a hair wash purchased under a contract of sale with the husband. Held: The wife had a good cause of action. There was a duty in the vendor to use ordinary care in compounding the article sold, and that this extended to the person for whose use … Continue reading George v Skivington: 1869
The plaintiff sued a friend of hers for wrongly advising her that a car she was thinking of buying was in good condition. Held: An agent, even a volunteer, owed a duty of care appropriate for those circumstances. The measurement was objective, not subjective. The defendant knew he was to be relied upon, and the … Continue reading Chaudry v Prabhakar: CA 1988
The skill and care to be expected of a financial advisor would ordinarily include compliance with the rules of the relevant regulator. Judges: Raymond Jack QC Citations: [2001] Lloyds PNLR 235 Jurisdiction: England and Wales Cited by: Cited – Green and Another v The Royal Bank of Scotland Plc CA 9-Oct-2013 The claimants appealed against … Continue reading Loosemore v Financial Concepts: 2001
The court was asked whether insurers could avoid a policy by reason of the creation by one of the insured hotel’s directors of false invoices intended to create a more favourable picture of the hotel’s trading performance if it became desirable to show its accounts to its bankers. No actual use of the invoices had … Continue reading Insurance Corporation of Channel Islands Limited and Another v Royal Hotel Limited and others (No 2): 1998
A country banker receiving from a customer a cheque for presentment drawn upon another country banker not resident in the same town, is not bound to transmit it for presentment by the post of the day on which he receives it, but has until post-time of the next day for so doing. A, a banker … Continue reading Hare v Edwin Henty And George Henty: 7 May 1861
The court was asked whether a debtor could pursue at the hearing of the bankruptcy petition a challenge to the petition debt on grounds which had already failed on an earlier application to set aside the statutory demand. Judges: Chadwick LJ Citations: [2000] BPIR 683 Jurisdiction: England and Wales Citing: See Also – Turner v … Continue reading Turner v Royal Bank of Scotland: CA 2000
A lift engineer had failed adequately to repair a lift which as result later fell to the bottom of its shaft. The plaintiff was consequently injured. Scott LJ said: ‘The common law has throughout its long history developed as an organic growth, at first slowly under the hampering restrictions of legal forms of process, more … Continue reading Haseldine v Daw and Son Ltd: CA 1941
In a contract the Defendants promised certain properties to whoever first arrived with the requisite draft contract and bankers drafts. The Plaintiffs did. Held: They failed in their claim. It involved a unilateral contract and the Defendants’ oral promises was expressly made subject to contract, but the Court decided the dispute by reference to the … Continue reading Daulia Ltd v Four Millbank Nominees Ltd: 1978
Lord Lindley MR said: ‘The Bankers’ Books Evidence Acts were passed for the obvious purpose of getting over a difficulty and hardship as to the production of bankers’ books. If such books contained anything which would be evidence for either of the parties, the banker or his clerk had to produce them at the trial … Continue reading Polock v Garle: 1898
An inquiry was made between banks as to the financial position of a customer of the defendant Bank. It was answered by the manager containing the words: ‘This information is for your private use only, and is given without any responsibility on our part.’ The customer of the requesting bank who had sought the reference … Continue reading Parsons v Barclay and Co Ltd and Goddard: CA 1910
The court discussed how a warranty of authority could arise in an agent: ‘An agent who warrants that he has authority need warrant no more than the bare fact. In the absence of special circumstances, he makes no warranty or representation about how he got his authority, whether it is express or implied, specific or … Continue reading Heskell v Continental Express Ltd: 1950
The plaintiff wanted to sell his land. The purchaser wished to know the planning status and prospects for the land. The local authority published a leaflet encouraging those interested to seek guidance from the authority’s planning officers. The plaintiff did so, but the advice received was negligently incorrect. Held: Thee informal planning advice given by … Continue reading Tidman v Reading Borough Council: QBD 4 Nov 1994
The plaintiff had been committed to a mental hospital. The question was whether the doctor (Anklesaria) who signed the certificate to support his committal was liable to him in negligence. Held: The House affirmed the judgment of the Court of Appeal, but without confirming this point. Lord Haldane thought it ‘probable that if the matter … Continue reading Everett v Griffiths: HL 1921
A ship was damaged in a collision. Though their goods were not damaged, the owners of cargo on the first ship became liable to the owners of the ship for a general average contribution. The owners sued the other ship owners for their negligence. The primary issue was whether the cargo-owners had only a derivative … Continue reading Morrison Steamship Co Ltd v Greystoke Castle (Cargo Owners): HL 1946
A receiver’s management duties will ordinarily impose on him no general duty to exercise the power of sale, or to ‘work’ an estate by refurbishing it before sale. Speaking of the role of an expert witness ‘What really matters in most cases are the reasons given for the opinion. As a practical matter a well … Continue reading Routestone Ltd v Minories Finance: ChD 1996
H and W charged the property to secure the H’s overdrawn bank account. The account was used both for his business and for payment of expenses relating to the matrimonial home. H was adjudicated bankrupt. W sought her equity to be exonerated from H’s debt. Held: Scott J said that where payments had been made … Continue reading In Re Pittortou (a bankrupt): ChD 1985
The bank replied to several enquiries as to the customer’s credit status without first seeking the customer’s consent. It claimed that this was general practice at the time. Held: The practice fell short of being ‘notorious’ or well known, and was a breach of confidentiality. Judges: Chadwick LJ Citations: Gazette 06-May-1999, [2000] BPIR 683 Jurisdiction: … Continue reading Turner v Royal Bank of Scotland plc: CA 6 May 1999
At the husband’s request his wife deposited with his bankers the title deeds of her property as security for advances to be made to him. Before he became bankrupt the debt was paid off by her. Held: The court acknowledged the entitlement of a wife, whose property has been charged to secure her husband’s debts, … Continue reading Re Cronmire, ex parte Cronmire: CA 1901
A partner in the plaintiff firm of solicitors stole money from them and spent it gambling in the defendant’s casino. The plaintiff cought to recover the money from the defendant, saying that as a gambling debt, no consideration had been given. They sought recovery also from their bankers, who had paid out on firm’s cheques … Continue reading Lipkin Gorman (a Firm) v Karpnale Ltd: 1987
The Board considered what would amount to negligence in a bank. Held: The test in Permewan was to be applied by ‘the standard to be derived from the ordinary practice of bankers, not individuals.’ A customer of the bank is a person who has a more permanent relationship with the bank, for instance, having an … Continue reading Commissioners of Taxation v English, Scottish and Australian Bank Limited: PC 2 Jan 1920
The court rejected an argument that because it was the usage of bankers to clear cheques through the clearing house system, the obligation of a presenting banker to present the cheque for collection at the branch of the paying bank where the drawer had his account was discharged by delivery of the cheque to the … Continue reading Barclay’s Bank v Bank of England: 1985
The House was asked whether a power of attorney included a power to draw cheques on the principal’s bank account in order to pay his own debts. The Court of Appeal by a majority, Russell J dissenting, had held that it did having regard to the terms of a letter written by the principal to … Continue reading Reckitt v Barnett Pembroke and Slater Ltd: HL 1929
The company advertised a product as assisting in permanent weight loss. The Advertising Standards Authority had found the advertisements to be misleading, but the company persisted, and the Authority referred the case to the applicant, who sought an injunction. Held: The court had jurisdiction to grant the injunction requested. Hoffmann J required no cross-undertaking in … Continue reading Director General of Fair Trading v Tobyward: ChD 1989
The defendant newspaper offered that its editor would give financial advice to readers who cared to seek it. He answered one enquiry for the name of a good stockbroker, with a reference to a person who, had he made enquiries, he would have discovered to be an undischarged bankrupt, and the plaintiff sought damages having … Continue reading De La Bere v Pearson Ltd: 1908
The plaintiff was a girl of ten years of age claimed she had been negligently treated by the defendant surgeon and apothecary. She sued in an action ex delicto, alleging a breach of the contract under which they had been employed, though it was her father who had paid the bill.A declaration in case stated … Continue reading Gladwell v Steggall: 19 Jun 1839
The plaintiff arranged with his bankers for them to honour cheques of one Patterson and when they advised the plaintiff of the amount of the cheques so honoured, the plaintiff would pay Kessler and Co. The plaintiff paid andpound;500 to the defendants for the credit of Kessler and Co., without being advised by Kessler and … Continue reading Kerrison v Glyn, Mills, Currie and Co: HL 1912
‘The tort of deceit involves a false representation made by the defendant, who knows it to be untrue, or who has no belief in its truth, or who is reckless as to its truth. If the defendant intended that the plaintiff should act in reliance on such representation and the plaintiff in fact does so, … Continue reading Standard Chartered Bank v Pakistan National Shipping Corporation: 1998
K owed the plaintiff andpound;5,000 plus interest. He also owed the defendants, who were his bankers, andpound;647. When he retired from the army the proceeds of sale of his commission, namely andpound;3000, were sent to the defendants as his bankers and paid into his account. Before that K had covenanted with the plaintiff by deed … Continue reading Roxburghe v Cox: 1881
(Australia) ‘In determining what is relevant to a Royal Commission inquiry, regard must be had to its investigatory character. Where broad terms of reference are given to it, as in this case, the commission is not determining issues between parties but conducting a thorough investigation into the subject matter. It may have to follow leads. … Continue reading Ross v Costigan: 1982
If a trustee chooses to answer questions from a stranger about the cestui que trust, his legal obligation is only to answer honestly and to the best of his information. He need not make enquiries to support those answers. Bowen LJ said: ‘Estoppel is only a rule of evidence: you cannot found an action upon … Continue reading Low v Bouverie: CA 1891
A company making a false statement on a bill of lading would be held liable for the tort of deceit when it knew that the bill must be relied upon by bankers and others making arrangements on its contents. A claimant ‘cannot recover for a loss avoidable by reasonable action on his own part because, … Continue reading Standard Chartered Bank v Pakistan National Shipping Corporation and Others (No 3): ComC 27 May 1998
Parliament had made detailed provision in a number of Acts for the discharge of the housing duties by local authorities. These detailed provisions did not contain a power to give a guarantee in connection with a bank loan to a company which the local authority had formed to assist in the acquisition and development of … Continue reading Credit Suisse and Another v Waltham Forest London Borough Council: CA 20 May 1996
A rogue opened a new bank account under a false name with the help of an incorrect reference from a valued customer. Held: When an account is fraudulently opened with the bank in the name of another person by someone pretending to be that person, the person opening the account is the customer. The court … Continue reading Marfani and Co Ltd v Midland Bank Ltd: CA 1968
On 1st April 1892, Page and Company, merchants in Liverpool, obtained an advance of pounds 5000 from a bank in Liverpool upon the security by way of pledge of a cargo of phosphate rock, then afloat, and handed the bill of lading to the bank. It was agreed that the bank should have immediate and … Continue reading North-Western Bank Ltd v John Poynter Son and Macdonalds: HL 16 Nov 1894
A. was financed by B. and Co. and C. and Co., both firms of bankers, who advanced him money on the security of goods. A. sold goods to D. and Co., and instructed them to remit the price direct to B. and Co., who had a right of security over the particular goods sold. D. … Continue reading Kleinwort, Sons, and Co v Dunlop Rubber Co: HL 16 Jul 1907
The claimant said that the defendant bookmakers had been negligent in allowing him to continue betting when they should have known that he was acting under an addiction. The defendant company had a policy for achieving responsible gambling, including procedures for self-exclusion. The claimant had of his own choice previously closed accounts at other bookmakers, … Continue reading Calvert v William Hill Credit Ltd: ChD 12 Mar 2008
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 duties of an auditor are founded in contract and the extent of the duties … Continue reading Caparo Industries Plc v Dickman and others: HL 8 Feb 1990
A banker giving a gratuitous reference is not required to do his best by, for instance, making inquiries from outside sources which are available to him, though this would make his reference more reliable. All that he is required to do is to conform to that standard of skill and competence and diligence which is … Continue reading Hedley Byrne and Co Ltd v Heller and Partners Ltd: CA 1961
The defendants were two bankers, who gave banker’s references as to the credit of a customer. The references were relied upon by the plaintiff, who claimed damages in negligence after they had suffered losses. Held: The defendants were liable. Judges: McNair J Citations: Unreported, 20 December 1960 Jurisdiction: England and Wales Cited by: Appeal from … Continue reading Hedley Byrne and Co Ltd v Heller and Partners Ltd: 20 Dec 1960
A partner in a firm of solicitors stole money from them, and spent it gambling with the defendants. The firm sued also their banker, who had been held to be aware of the defaulting partner’s weaknesses and activities. Held: The solicitors could not recover from the gambling house. The defendants gave valuable consideration in good … Continue reading Lipkin Gorman v Karpnale Ltd: CA 1989
The court emphasised ‘the great and fundamentally important separation’ between bankers and re-insurers. Judges: Sir John Donaldson MR Citations: [1984] 1 WLR 392, [1984] 1 Lloyds Rep 251 Jurisdiction: England and Wales Cited by: Cited – Manx Electricity Authority v J P Morgan Chase Bank CA 3-Oct-2003 The claimant sought to appeal an order striking … Continue reading Bolivinter Oil SA v Chase Manhattan Bank NA: 1984
Statute’s Mischief May be Inspected The House considered limitations upon them in reading statements made in the Houses of Parliament when construing a statute. Held: It is rare that a statute can be properly interpreted without knowing the legislative object. The courts may look outside a statute in order to identify the ‘mischief’ Parliament was … Continue reading Black-Clawson International Ltd v Papierwerke Waldhof Aschaffenburg AG: HL 5 Mar 1975
The client sought damages against its former bankers as regards the misselling of interest rate swaps agreements dependant in part upon the dicredited LIBOR interest rates Judges: Sir Terence Etherton MR, Lord Justice Longmore and Lord Justice Newey Citations: [2018] EWCA Civ 355 Links: Bailii Jurisdiction: England and Wales Citing: Appeal from – Property Alliance … Continue reading Property Alliance Group Ltd v The Royal Bank of Scotland Plc: CA 2 Mar 2018
Application for disclosure by party’s bankers of statements as part of Norwich Pharmacal application Judges: Clark M Citations: [2017] EWHC 3338 (Ch) Links: Bailii Jurisdiction: England and Wales Litigation Practice Updated: 03 April 2022; Ref: scu.602618
The first defendant’s bankers had heard of his conviction for fraud in Israel and had notified his and associated bank accounts to SOCA. He now appealed against ex parte world wide asset freezing (PFO) and disclosure orders (DO) made againt him. The PFO appellants sought an order varying the property freezing order so as, inter … Continue reading Serious Organised Crime Agency v Perry: Admn 28 Jun 2010
Directors of a London firm of stockbrokers brought libel proceedings against two Swiss bankers. Held: The absolute immunity which is given to both witnesses and potential witnesses extends to all those taking part in a criminal investigation which is being conducted looking forward to a prosecution. The general principle was that the use of documents … Continue reading Mahon v Rahn: QBD 19 Jun 1996
A financial and investment company which has obtained in the course of its business, for the purpose of paying for securities purchased by it, loans from bankers in New York for periods not exceeding six months, is entitled, in striking its balance of profits for the purpose of income tax, to deduct the interest paid … Continue reading The Scottish North American Trust, Ltd v Farmer (Surveyor of Taxes): HL 14 Dec 1911
The claimants, Coomber, claimed in conspiracy, and the defendants claimed in defamation. Various applications were made. The claimants had promoted a development project, but their bankers went into administration. The bank being unable to promise further funds, required repayment of the sums already advanced, and in due course sold the property. The claimants alleged a … Continue reading Ernst and Young Llp and Others v Coomber and Another: QBD 8 Nov 2010
D and J were directors of a company (BML) which traded as a health and leisure club, and which owned premises near Chesterfield. Under a scheme set up in order to avoid payment of VAT on membership fees, BML entered into two separate leases with D and J. The first lease demised part of BML’s … Continue reading Mclean and Another v Woolf and others: SCCO 2 Nov 2003
The claimant was with Stephen Lawrence when they were both attacked and Mr Lawrence killed. He claimed damages for the negligent way the police had dealt with his case, and particularly said that they had failed to assess him as a victim of crime, had failed to provide him with reasonable assistance and support, and … Continue reading Brooks v Commissioner of Police for the Metropolis and others: HL 21 Apr 2005
A stockbroker sold bank shares for certain clients for pounds 2900, and received from the buying broker, in accordance with the usage of the Stock Exchange, a cheque for that amount in his favour. This cheque he lodged with his bankers, pounds 2000 being put to his own account, which was at that time overdrawn … Continue reading Thomson and Others v Clydesdale Bank: HL 26 Jun 1893
No Waiver for disclosure of Advice EAT PRACTICE AND PROCEDURE: Admissibility of evidence The claimant sought disclosure of certain legal advice on the basis that its effect, and a summary of its contents, had been put before the court and therefore privilege was waived. The Tribunal rejected the application and the EAT held that they … Continue reading Brennan and others v Sunderland City Council Unison GMB: EAT 16 Dec 2008
London Commodity Exchange brokers demanded a bank guarantee before entering into buying and selling transactions on behalf of their customer, a French trading company. The defendants, the trading company’s bankers, gave the guarantee which contained a conclusive evidence clause: ‘Notice of default shall from time to time, be given by [plaintiffs] to [defendants] and on … Continue reading Bache and Co (London) Ltd v Banque Vernes et Commerciale de Paris SA: CA 1973
Banker’s Liability for Negligent Reference The appellants were advertising agents. They were liable themselves for advertising space taken for a client, and had sought a financial reference from the defendant bankers to the client. The reference was negligent, but the bankers denied any assumption of a duty of care to a third party when purely … Continue reading Hedley Byrne and Co Ltd v Heller and Partners Ltd: HL 28 May 1963
The plaintiff, who worked in financial services, complained of the terms of the reference given by his former employer. Having spoken of his behaviour towards members of the team, it went on: ‘his former superior has further stated he is a man of little or no integrity and could not be regarded as honest . … Continue reading Spring v Guardian Assurance Plc and Others: HL 7 Jul 1994
This appeal is concerned with the liability of a local authority for what is alleged to have been a negligent failure to exercise its social services functions so as to protect children from harm caused by third parties. The principal question of law which it raises is whether a local authority or its employees may … Continue reading Poole Borough Council v GN and Another: SC 6 Jun 2019
Limits to Police Exemption from Liability The claimant, an elderly lady was bowled over and injured when police were chasing a suspect through the streets. As they arrested him they fell over on top of her. She appealed against refusal of her claim in negligence. Held: Her appeal succeeded. It is normally only in a … Continue reading Robinson v Chief Constable of West Yorkshire Police: SC 8 Feb 2018
The House heard an action for damages for deceit or fraudulent misrepresentation. Held: The court set out the requirements for fraud, saying that fraud is proved when it is shown that a false representation has been made knowingly or without belief in its truth or recklessly without caring whether it be true or false.Lord Herschell … Continue reading Derry v Peek: HL 1 Jul 1889
The plaintiff bought her apartment, but discovered later that the foundations were defective. The local authority had supervised the compliance with Building Regulations whilst it was being built, but had failed to spot the fault. The authority appealed a finding that it was liable, arguing that the claims were time barred and that it had … Continue reading Anns and Others v Merton London Borough Council: HL 12 May 1977
Decomposed Snail in Ginger Beer Bottle – Liability The appellant drank from a bottle of ginger beer manufactured by the defendant. She suffered injury when she found a half decomposed snail in the liquid. The glass was opaque and the snail could not be seen. The drink had been bought for her by a friend, … Continue reading Donoghue (or M’Alister) v Stevenson: HL 26 May 1932
In Smith, the lender instructed a valuer who knew that the buyer and mortgagee were likely to rely on his valuation alone. The valuer said his terms excluded responsibility. The mortgagor had paid an inspection fee to the building society and received a copy of the report, and relying on it, had bought the house. … Continue reading Smith v Eric S Bush, a firm etc: HL 20 Apr 1989
The plaintiff had been an investor with the defendant. He asked them about an associated company. He was given advice which was incorrect. He claimed damages for negligence. Held: The company was not itself in the business of giving such advice. The advice had been gratuitous. The company had appreciated that he might act on … Continue reading Mutual Life And Citizens’ Assurance Co Ltd And Another v Evatt: PC 16 Nov 1971
The Playboy casino required a reference for a customer, but asked for this through a third party. The bank was not aware of the agency but gave a good reference for a customer who had never deposited any money with them and nor to whom it had issued cheques. Playboy sought damages under the reference. … Continue reading Banca Nazionale Del Lavoro Spa v Playboy Club London Ltd and Others: SC 26 Jul 2018
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 responsibility principle enunciated in Hedley is not confined … Continue reading Henderson v Merrett Syndicates Ltd: HL 25 Jul 1994
The pursuer claimed for false and fraudulent misrepresentation againt his bankers. Held: A duty of care is not only owed in cases of fiduciary relationship in the narrow sense of relationships which had been recognised by the court of Chancery as being of a fiduciary character. There are other special relationships. Judges: Lord Haldane, Earl … Continue reading Robinson v National Bank of Scotland: HL 10 Apr 1916
The claimant had served an asset freezing order on the bank in respect of one of its customers. The bank paid out on a cheque inadvertently as to the order. The Commissioners claimed against the bank in negligence. The bank denied any duty of care. Held: The bank’s appeal succeeded. The bank owed a duty … Continue reading HM Customs and Excise v Barclays Bank Plc: HL 21 Jun 2006
The defendant solicitor had persuaded his client to release a charge, thus advancing the solicitor’s own subsequent charge on the same property. The action was started in the Chancery Division of the High Court. The statement of claim alleged fraud and claimed damages. At the trial the action was treated as action in the tort … Continue reading Nocton v Lord Ashburton: HL 19 Jun 1914
Claim for alleged misselling of interest rate swap products. Aspin DBE J [2016] EWHC 3342 (Ch) Bailii England and Wales Citing: Cited – Cassa Di Risparmio Della Repubblica Di San Marino Spa v Barclays Bank Ltd ComC 9-Mar-2011 The claimant alleged misselling of a complex financial product by the defendant. Held: Hamblen J set out … Continue reading Property Alliance Group Ltd v The Royal Bank of Scotland Plc: ChD 21 Dec 2016
Application for a Norwich Pharmacal and/or Bankers Trust order against the defendant. Hlaux J [2016] EWHC 3175 (Comm) Bailii England and Wales Litigation Practice Updated: 27 January 2022; Ref: scu.572297
(New Zealand Court of Appeal) Prior to his marriage to W, the claimant wished to enter with her into an agreement of which the statutory effect would be to contract them out of the law’s general provisions for the making of financial adjustments between them in the event of separation. Pursuant to one of the … Continue reading Connell v Odlum: 1993
If a bank chooses to give advice to a customer, then the Bank’s obligation is to advise with ordinary skill and care. The liability is primarily on contract: ‘In my judgment, the limits of a banker’s business cannot be laid down as a matter of law. The nature of such a business must in each … Continue reading Woods v Martins Bank Ltd: 1958
Bankers claim under guarantee Sir Ross Cranston [2019] EWHC 231 (Comm) Bailii England and Wales Banking Updated: 22 January 2022; Ref: scu.633216
A plaintiff in an English action had obtained an order against an American bank, served on its London office, requiring production of books and papers at its New York head office. Held: The court pointed out the distinction between ‘personal jurisdiction, i.e. who can be brought before the court’ and ‘subject matter jurisdiction, i.e., to … Continue reading MacKinnon v Donaldson, Lufkin and Jenrette Securities Corporation: ChD 1986
The parties disputed whether a contract had been made. The proposed contract was contained in a letter and a plan but only the plan was signed by both parties. Held: The requirements of Section 2 had not been satisfied because it was the letter which contained the contract which referred to the plan and incorporated … Continue reading Firstpost Homes Ltd v Johnson and Others: CA 14 Aug 1995
A defaulting trustee who had misappropriated trust property entered into a deed dated 27 March 1930 by which he covenanted to pay a principal sum which was made up of the amount of the trust monies he was obliged to account for together with compound interest at 5 per cent per annum up to 1 … Continue reading Barlow v Inland Revenue Commissioners: 1937
The Court was asked whether interest payable under rule 14.23(7) of the Insolvency Rules 2016 is ‘yearly interest’ within the meaning of section 874 of the Income Tax Act 2007. If so, the administrators must deduct income tax before paying interest to creditors. Lehmann Brothers had become insolvent, but in the administration a substantial surplus … Continue reading Revenue and Customs v Joint Administrators of Lehman Brothers International (Europe): SC 13 Mar 2019
The question was as to the scope of the words ‘yearly interest’ used in the Income Tax Acts of 1842 and 1853. The bankers of certain overseers for the poor allowed the latter by arrangement half-yearly interest at an agreed-on rate on the daily balances standing at their credit. The overseers claimed exemption for income … Continue reading Garston Overseers v Carlisle: 1915
The plaintiff firm of solicitors sought to recover money which had been stolen from them by a partner, and then gambled away with the defendant. He had purchased their gaming chips, and the plaintiff argued that these, being gambling debts, were worthless, and that therefore no consideration had been given. Held: The casino’s defence succeeded. … Continue reading Lipkin Gorman (a Firm) v Karpnale Ltd: HL 6 Jun 1991
(Outer House) The pursuer had made a loan to X in assumed reliance on a statement by the defenders, who were X’s solicitors, about the extent of his assets. The statement was materially inaccurate. But the pursuer’s claim against the defenders failed. Having referred to the Hedley Byrne case as the proper starting point and … Continue reading Midland Bank Plc v Cameron, Thom, Peterkin and Duncans: SCS 1988
(Extra Division, Inner House) The bank had relied upon mistaken statements by the solicitor acting for a client as to the intention to repay its debts. Without checking, the bank issued the documents to release their security. It now appealed from rejection of its claim in negligence against the solicitor. Held: The appeal succeeded. Lady … Continue reading NRAM Plc v Jane Steel and Bell and Another: SCS 19 Feb 2016
(New Zealand Court of Appeal) The claimant had agreed to make a loan to X and to take security for it on a yacht. The defendants, who were X’s solicitors, certified to the claimant that the instrument of security executed by X in relation to the yacht was binding on him. In fact, as the … Continue reading Allied Finance and Investments Ltd v Haddow and Co: 1983
The claimant sought damages from the defendant surgeon alleging negligent care of a footballer. The defendant argued that he had no duty to the club as employer of his patient who was being treated through his BUPA membership. It would have created a conflict of interest if he had accepted a contractual obligation to the … Continue reading West Bromwich Albion Football Club Ltd v El-Safty: QBD 14 Dec 2005
The claimant argued that the defendant owed him a duty of care as proprietor of a registered nursing home in cancelling the registration of the home under the 1984 Act. The authority appealed a finding that it owed such a duty. Held: The magistrate had made his decision on the inaccurate material placed before him. … Continue reading Jain and Another v Trent Strategic Health Authority: CA 22 Nov 2007
The court upheld a finding of negligence against a firm of solicitors for failing to ensure the correct attestation of a will, and also the award of damages in favour of a disappointed beneficiary.A solicitor owes a duty of care to the party for whom he is acting but generally owes no duty to the … Continue reading Ross v Caunters (a firm): ChD 1979
When considering the liability of an auditor in negligence, the fact and nature of any communications direct between the auditor and the potential investor must be allowed for. The court set out a non-exhaustive list of factors to be taken into account in determining whether the threefold test and the assumption of responsibility test for … Continue reading James McNaughton Paper Group Ltd v Hicks Anderson and Co: CA 31 Jul 1990
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 of the underlease. The negative answer of the second defendants was a misrepresentation, which, following its purchase … Continue reading Gran Gelato Ltd v Richcliff (Group) Ltd: ChD 1992
A solicitor had undertaken to look after certain passports, but failed to do so. The husband had twice previously kidnapped his children whose custody was an issue before the court. Once the husband regained the passports, he again fled with the children. Held: The court should be prepared to find a duty of care on … Continue reading Al-Kandari v J R Brown and Co: CA 1988
An unsophisticated lender running the business of a car mechanic wanted to lend money to borrowers on the security of real property owned by an associate of the borrowers. The borrowers instructed the defendant solicitors to give effect to this transaction. He was aware that the lender was not represented. The deeds were later purported … Continue reading Dean v Allin and Watts (a Firm): CA 23 May 2001
The claimants sought repayment by the bank of sums paid to them for Payment Protection Insurance policies sold to them in connection with loans made by the bank. The Bank now resisted an application for leave to amend the particulars of the counterclaim to allege that the taking out of the insurance had been made … Continue reading Barnes and Another v Black Horse Ltd: QBD 31 May 2011
The respondents sought to have set aside a world wide asset freezing and associated orders obtained by SOCA against them. They said that the Court had no jurisdiction over them, and that the Agency was guilty of wilful non-disclosure. They first respondent had been convicted in Israel of offences of dishonesty. Foskett J [2009] EWHC … Continue reading Serious Organised Crime Agency v Perry and Others: Admn 30 Jul 2009
The first appellant had been convicted of substantial frauds in Israel. He appealed against world wide asset freezing (PFO) and disclosure (DO) orders made against him. Neither the appellant, nor his offences were connected with the UK. A bank account within the UK had been disclosed. Held: The appeals succeeded (Judge and Clarke dissenting). The … Continue reading Perry and Others v Serious Organised Crime Agency: SC 25 Jul 2012
The case of Donoghue -v- Stevenson was restricted in its application to cases of negligence causing damage to life, limb or health. Wrottesley J [1939] 3 All ER 209, [1939] 161 LT 227 England and Wales Citing: Cited – Donoghue (or M’Alister) v Stevenson HL 26-May-1932 Decomposed Snail in Ginger Beer Bottle – LiabilityThe appellant … Continue reading Old Gate Estates Ltd v Toplis and Harding and Russell: 1939
