Price Meats Ltd v. Barclays Bank Plc [1999] EWHC Ch 190 (30th November, 1999)

Price Meats Ltd v. Barclays Bank Plc [1999] EWHC Ch 190 (30th November, 1999)

Constructive knowledge, as pleaded by the defendant, is insufficient in law to impose a duty on the customer to inform the bank of forgery. Only actual knowledge or deliberate shutting of eyes to the obvious is sufficient. The defence alleging constructive knowledge and a wider duty must be struck out as it...

Source-derived case information.

Citation
[1999] EWHC Ch 190
Parties
Claimant: Claimant/Appellant; Defendant: Defendant/Respondent
Jurisdiction
England and Wales
Procedural Posture
Civil / Appeal Against Interlocutory Order
Outcome
appeal allowed
Legal Topics
Forged Cheques, Constructive Knowledge, Duty to Inform Bank, Pleadings, Strike Out Application
Banking Law Contract Law Forged Cheques Constructive Knowledge Duty to Inform Bank Pleadings Strike Out Application

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Summary, issues, holding and outcome

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Parties

Claimant/Appellant

Claimant

Defendant/Respondent

Defendant

Procedural Posture

Civil / Appeal Against Interlocutory Order

Legal Issues

  1. 1 Whether paragraphs 2 to 7 of the defence disclose reasonable grounds of defence under CPR 3.4(2)(a)
  2. 2 Whether constructive knowledge is sufficient to impose a duty on a customer to inform the bank of forgery
  3. 3 Whether the defence alleges a wider duty than recognised by law

Ratio Decidendi

Constructive knowledge, as pleaded by the defendant, is insufficient in law to impose a duty on the customer to inform the bank of forgery. Only actual knowledge or deliberate shutting of eyes to the obvious is sufficient. The defence alleging constructive knowledge and a wider duty must be struck out as it discloses no reasonable grounds of defence.

Court Disposition

appeal allowed

Orders

  • Paragraphs 2 to 7 of the defence are struck out.