Evans & Associates v Citibank Ltd & Ors [2007] NSWSC 1004

Evans & Associates v Citibank Ltd & Ors [2007] NSWSC 1004

It was probable that European Bank Ltd would have converted the funds from US dollars to euros but for the interlocutory order; the loss of higher return was the natural consequence of the court's order, foreseeable to the plaintiff, and flowed from the loss of a commercial opportunity. The objections based on policy, mitigation, and remoteness were rejected. Thus, European Bank Ltd was entitled to compensation under the usual undertaking as to damages.

Jurisdiction
Australia
Judgment Date
20 September 2007
Procedural Posture
Civil / Post Interlocutory Inquiry as to Compensation Under Undertaking as to Damages
Outcome
Judgment for 8th defendant against plaintiff.
Legal Topics
['undertakings as to Damages' 'interlocutory Orders' 'conversion of Currency' 'compensation Assessment' 'mitigation of Loss']
['procedure' 'banking Law' 'damages'] ['undertakings as to Damages' 'interlocutory Orders' 'conversion of Currency' 'compensation Assessment' 'mitigation of Loss']

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 1 Authorities cited 2 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Procedural Posture

Civil / Post Interlocutory Inquiry as to Compensation Under Undertaking as to Damages

Legal Issues

  1. 1 ['Whether European Bank Ltd is entitled to compensation under the undertaking as to damages for the loss of return from currency conversion denied by interlocutory order' 'Whether the loss claimed was the natural consequence of the order and foreseeable' 'Whether European Bank would have converted US dollars to euros but for the order' 'Whether European Bank failed to mitigate its loss']

Ratio Decidendi

It was probable that European Bank Ltd would have converted the funds from US dollars to euros but for the interlocutory order; the loss of higher return was the natural consequence of the court's order, foreseeable to the plaintiff, and flowed from the loss of a commercial opportunity. The objections based on policy, mitigation, and remoteness were rejected. Thus, European Bank Ltd was entitled to compensation under the usual undertaking as to damages.

Court Disposition

Judgment for 8th defendant against plaintiff.

Orders

  • ['Compensation to be calculated as the difference between the likely return on a euro investment and actual US dollar return during the relevant period (rounded to US $800,000), plus US $3,077.71 interest deduction, all converted into Australian dollars as at 18 March 2005.' 'Court to hear parties on the final...