Bathija v Lloyds TSB Bank Plc

Bathija v Lloyds TSB Bank Plc

Lloyds was in breach of contract for overcharging interest and paying the CHAPS transfer to IATA one day late, but the liquidation of Global was not caused by this breach and the claimed losses are too remote to be recoverable. Global had no value at the relevant date.

Source-derived case information.

Parties
Claimant: Naresh Bathija; Defendant: Lloyds TSB Bank PLC
Jurisdiction
England and Wales
Judgment Date
05 December 2014
Procedural Posture
Civil / Judgment
Outcome
Claim dismissed; counterclaim allowed in part.
Legal Topics
Breach of Contract, Banking Negligence, Remoteness of Damages, Guarantee Liability, Mortgage Enforcement
Contract Law Banking Law Insolvency Law Breach of Contract Banking Negligence Remoteness of Damages Guarantee Liability Mortgage Enforcement

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Parties

Naresh Bathija

Claimant

Lloyds TSB Bank PLC

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Lloyds was in breach of contract for dishonouring direct debits and late CHAPS payment
  2. 2 Whether Lloyds' breach caused Global's liquidation
  3. 3 Whether damages claimed are too remote

Ratio Decidendi

Lloyds was in breach of contract for overcharging interest and paying the CHAPS transfer to IATA one day late, but the liquidation of Global was not caused by this breach and the claimed losses are too remote to be recoverable. Global had no value at the relevant date.

Court Disposition

Claim dismissed; counterclaim allowed in part.

Orders

  • Refund of £1,241.17 for overcharged interest already made; any outstanding balance to be set off against sums due to Lloyds.
  • Order for interim payment of £150,000 under guarantee.