A cautioner, having had to pay the sum guaranteed owing to the bankruptcy of the principal debtor and two co-cautioners, brought an action of damages against the bank of the co cautioners, on the ground of false and fraudulent representations as to their financial stability made by the bank’s local agent in letters written in answer to inquiries made on his behalf. The Lord Ordinary, and the Superior Courts found no ground to disagree, found that the bank agent had not acted dishonestly.
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Held ( aff. decision of the Second Division) that there being no special duty due toward the pursuer the defenders fell to be assoilzied.
Judges:
Earl Loreburn, Viscount Haldane, Lord Kinnear, and Lord Atkinson
Citations:
[1916] UKHL 390, 53 SLR 390
Links:
Jurisdiction:
Scotland
Banking
Updated: 14 July 2022; Ref: scu.630681