Prehn v Royal Bank of Liverpool: CE 31 Jan 1870

The defendants, bankers at Liverpool, by their letter of credit to the plaintiffs, grain merchants at Alexandria and Liverpool, undertook to accept the drafts of the plaintiffs’ Alexandria firm, the plaintiffs undertaking to put them in funds to meet the bills at maturity, and the defendants receiving pounds per cent, for the accommodation. Bills were accepted by the defendants under this arrangement, and the plaintiffs duly provided the defendants with funds exceeding the amount of the acceptances. Before the bills became due, the defendants’ bank stopped, and they gave notice to the plaintiffs that they would be unable to meet the bills. The plaintiffs arranged with another house in Liverpool to take up the bills, paying per cent, commission; they were also obliged to pay to the holders the expenses of protesting the bills at Liverpool and Alexandria; and had also to incur expense in telegraphic communications between Liverpool and Alexandria. In an action against the defendants for breach of the contract contained in their letter of credit. Held, that the plaintiffs were entitled to recover the commission and the notarial and telegraphic expenses.
Martin B said: ‘Special damages are given in respect of any consequences reasonably or probably arising from the breach complained of.’

Martin B
(1870) 5 Ex 92, [1870] UKLawRpExch 15, (1869-1870) LR 5 Exch 92
England and Wales
Cited by:
CitedLagden v O’Connor HL 4-Dec-2003
The parties had been involved in a road traffic accident. The defendant drove into the claimant’s parked car. The claimant was unable to afford to hire a car pending repairs being completed, and arranged to hire a car on credit. He now sought . .

Lists of cited by and citing cases may be incomplete.


Updated: 18 December 2021; Ref: scu.188655