8 Oct 2004
ASB BANK LTD V DAVIDSON And Ors CA CA95/03
- Citation
- openlaw-b829c184_b1ed_4c79_8284_1a97e92be197.pdf
- Court
- Court of Appeal
The Court held that the trustees (as the customer acting unanimously) were not liable for breach of the notification/representation obligations because two trustees lacked actual knowledge and constructive knowledge by deemed delivery was not established; however, the Deed of Guarantee and Indemnity (clause 2.3) was unambiguously drafted to create an independent indemnity which extended to cover amounts not recoverable from the trustees because of lack of authority of a trustee, so Mr and Mrs Davidson are jointly and severally liable to indemnify ASB for the bank's loss under the third letter…