Linklaters (a firm) v HSBC Bank Plc & Anor

Linklaters (a firm) v HSBC Bank Plc & Anor

HSBC, as BPE's agent for collection, is entitled to a complete indemnity from BPE for its liability to Linklaters, following Middle Temple v Lloyds Bank, as neither the fact that HSBC was also the paying bank nor alleged negligence towards BPE distinguishes the case. Both banks were negligent towards the true owner, but as between themselves, BPE bears primary responsibility.

Parties
Claimant: Linklaters (a firm); 1st Defendant/part 20 Claimant: HSBC Bank plc; 2nd Defendant/part 20 Defendant: Banco Popular Espanol
Jurisdiction
England and Wales
Judgment Date
22 May 2003
Procedural Posture
Commercial / Judgment After Trial
Outcome
HSBC succeeds in its claim for a complete indemnity from BPE.
Legal Topics
Conversion, Indemnity, Contribution, Implied Warranty, Negligence, Bills of Exchange, Money Laundering
Banking Law Tort Law Agency Law Conversion Indemnity Contribution Implied Warranty Negligence +2 more

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 4 Authorities cited 22 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Linklaters (a firm)

Claimant

HSBC Bank plc

1st Defendant/part 20 Claimant

Banco Popular Espanol

2nd Defendant/part 20 Defendant

Procedural Posture

Commercial / Judgment After Trial

Legal Issues

  1. 1 Is HSBC entitled to an indemnity or damages for breach of warranty from BPE for its liability to Linklaters?
  2. 2 Should liability between HSBC and BPE be apportioned under the Civil Liability (Contribution) Act 1978?
  3. 3 Did both HSBC and BPE act negligently in relation to the conversion of the cheque?

Ratio Decidendi

HSBC, as BPE's agent for collection, is entitled to a complete indemnity from BPE for its liability to Linklaters, following Middle Temple v Lloyds Bank, as neither the fact that HSBC was also the paying bank nor alleged negligence towards BPE distinguishes the case. Both banks were negligent towards the true owner, but as between themselves, BPE bears primary responsibility.

Court Disposition

HSBC succeeds in its claim for a complete indemnity from BPE.

Orders

  • BPE to indemnify HSBC in respect of its liability to Linklaters.
  • Form of order and costs to be determined with assistance from counsel.