Lloyds Bank Plc v McBains Cooper Consulting Ltd

Lloyds Bank Plc v McBains Cooper Consulting Ltd

McBains was liable only for losses directly caused by its negligent failure to inform the bank about payments for third floor works, not for all losses after the breach. The bank's own knowledge and conduct meant it bore the majority of responsibility for the losses. Damages were limited to sums paid for the third floor, apportioned two-thirds to the bank and one-third to McBains.

Parties
Respondent (claimant): Lloyds Bank PLC; Appellant (defendant): McBains Cooper Consulting Ltd
Jurisdiction
England and Wales
Judgment Date
15 March 2018
Procedural Posture
Civil Appeal / Appeal From High Court (technology & Construction Court)
Outcome
Appeal allowed in part
Legal Topics
Scope of Duty, Damages Assessment, Contributory Negligence, Project Monitoring, Causation
Contract Law Professional Negligence Banking Law Scope of Duty Damages Assessment Contributory Negligence Project Monitoring Causation

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Parties

Lloyds Bank PLC

Respondent (claimant)

McBains Cooper Consulting Ltd

Appellant (defendant)

Procedural Posture

Civil Appeal / Appeal From High Court (technology & Construction Court)

Legal Issues

  1. 1 What is the scope of a project monitor's duty to a lender bank?
  2. 2 Is the project monitor liable for all losses after breach or only those directly caused by the breach?
  3. 3 How should damages be apportioned where both bank and monitor are negligent?

Ratio Decidendi

McBains was liable only for losses directly caused by its negligent failure to inform the bank about payments for third floor works, not for all losses after the breach. The bank's own knowledge and conduct meant it bore the majority of responsibility for the losses. Damages were limited to sums paid for the third floor, apportioned two-thirds to the bank and one-third to McBains.

Court Disposition

Appeal allowed in part

Orders

  • Damages limited to sums paid for third floor works (£259,792)
  • Liability apportioned: bank two-thirds, McBains one-third (£86,597)