CALICO PRINTERS' ASSOCIATION, LTD. v. BARCLAYS BANK, LTD.

(1931) 39 Ll.L.Rep. 51

COURT OF APPEAL.

Before Lord Justice Scrutton, Lord Justice Greer and Lord Justice Slesser.

Banking - Contract - Negligence - Consignment of plaintiffs' goods to Beyrout-Drafts and documents of title presented to English bank for collection through foreign bank (nominated by plaintiffs), documents to be released on payment of drafts by consignees -"Please do your best on our behalf to warehouse and insure them against fire" - Condition: "Collections are undertaken at depositors' risk only, on the understanding that no liability whatever attaches to the bank in connection therewith or with the storage and insurance of the relative goods"- English bank's instructions to foreign bank: "Surrender documents on payment. If refused, warehouse and insure goods"-Goods destroyed by fire at Beyrout before drafts paid and without insurance having been effected- Claim by plaintiffs against English and foreign banks for breach of contract and/or duty-Right of English bank to rely upon conditions-Ambiguity- Repugnancy-"Deviation" - Finding of trial Judge that the foreign bank were negligent in failing to insure or in failing to inform the English bank of the position, but that there was no privity between the plaintiffs and the foreign bank and that therefore the claim against the foreign bank failed; and that the English bank were protected by the condition of the contract -Appeal by plaintiffs against judgment in favour of English bank-