FRIEDLANDER AND ANOTHER v. LLOYDS BANK, LTD.

(1935) 52 Ll L Rep 233

KING'S BENCH DIVISION.

Before Mr. Justice Goddard.

Bank-Negligence-Agreement by plaintiffs (German subjects) to discount (or advance loan upon) bills of exchange drawn by B (representing German company) upon American company, payment of bills on due date to be covered by 100 per cent. Lloyd's policy-Deposit of £9000 with local branch of defendant Bank to cover premium-Instructions given by plaintiffs to bank manager to pay premium against cover note with pro forma policy attached, and when cover note and bills of exchange were in Bank's possession, Bank were to hand to B plaintiffs' letter instructing German bank to transfer Rm.760,000 from plaintiffs' account to B-Insurance effected by Lloyd's broker (introduced by B) with non-tariff company ("10 per cent. ourselves, 90 per cent. Lloyd's by reinsurance")-Intimation given by bank manager to plaintiffs that their instructions had been carried out-Knowledge of bank manager as to precise meaning of plaintiffs' instructions-Inference to be drawn from fact that manager accepted money presents from B (and others acting with him) subsequent to the insurance being completed-Whether bank manager acted in good faith- Liability of Bank.