27 Jan 1984
TAI HING COTTON MILL LTD v. LIU CHONG HING BANK LTD AND OTHERS
- Citation
- TAI HING COTTON MILL LTD v. LIU CHONG HING BANK LTD AND OTHERS
- Court
- Court of Appeal
- Case number
- CACV103/1983
The Court held that a bank customer owes, both in contract (as an implied legal incident) and in tort (by proximity), a duty to take reasonable care in operating a current account to protect the bank from loss by forgery; on the facts the plaintiff breached that duty (and was estopped by its account confirmations), therefore the banks were entitled to debit the forged cheques and the plaintiff's appeal was dismissed while the 1st defendant's cross-appeal was allowed.