Lloyds Bank Plc v McBains Cooper Consulting Ltd

Lloyds Bank Plc v McBains Cooper Consulting Ltd

McBains Cooper breached its duty by failing to inspect the site monthly and failing to advise the Bank of drawdowns for third floor works and facility inadequacy, causing loss after November 2008. However, Lloyds Bank was contributorily negligent by failing to act on clear indications of funding shortfall and third floor works. Liability apportioned: McBains Cooper liable for two-thirds of post-November 2008 losses, Bank for one-third.

Parties
Claimant: Lloyds Bank plc; Defendant: McBains Cooper Consulting Ltd
Jurisdiction
England and Wales
Judgment Date
02 October 2015
Procedural Posture
Civil / Judgment
Outcome
Claim partially allowed; liability apportioned.
Legal Topics
Project Monitoring, Contributory Negligence, Breach of Contract, Causation, Damages
Contract Law Professional Negligence Banking Law Project Monitoring Contributory Negligence Breach of Contract Causation Damages

Case Brief

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Parties

Lloyds Bank plc

Claimant

McBains Cooper Consulting Ltd

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether McBains Cooper breached its contractual and professional duties as project monitor to Lloyds Bank
  2. 2 Whether Lloyds Bank relied on negligent advice and suffered loss
  3. 3 Extent of contributory negligence by Lloyds Bank

Ratio Decidendi

McBains Cooper breached its duty by failing to inspect the site monthly and failing to advise the Bank of drawdowns for third floor works and facility inadequacy, causing loss after November 2008. However, Lloyds Bank was contributorily negligent by failing to act on clear indications of funding shortfall and third floor works. Liability apportioned: McBains Cooper liable for two-thirds of post-November 2008 losses, Bank for one-third.

Court Disposition

Claim partially allowed; liability apportioned.

Orders

  • McBains Cooper liable for two-thirds of losses sustained by Lloyds Bank after November 2008, subject to deduction of £288,323.84 already paid following adjudication.
  • Precise quantum to be agreed by parties or determined by court if not agreed.