Fraser Trading Co & Ors v Bank Of Scotland [1999] ScotCS 110 (11 May 1999)

Fraser Trading Co & Ors v Bank Of Scotland [1999] ScotCS 110 (11 May 1999)

The pursuers failed to aver any prima facie relevant defence to the bank's claim for repayment of the overdraft, as their damages claim was manifestly irrelevant and indistinguishable from a previously rejected counterclaim. The existence of security held by the bank was irrelevant to the entitlement to decree for payment. Accordingly, the action for reduction was irrelevant and must be dismissed.

Citation
[1999] ScotCS 110
Parties
Pursuers: Fraser Trading Co and Others; Defenders: The Governor & Company of the Bank of Scotland
Jurisdiction
Scotland
Judgment Date
11 May 1999
Procedural Posture
Action of Reduction / Procedure Roll Debate; Judgment on Relevancy
Outcome
Action dismissed
Legal Topics
Reduction of Decree in Absence, Breach of Contract, Misrepresentation, Right of Retention, Summary Decree, Security for Debt
Civil Procedure Contract Law Banking Law Reduction of Decree in Absence Breach of Contract Misrepresentation Right of Retention Summary Decree +1 more

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Parties

Fraser Trading Co and Others

Pursuers

The Governor & Company of the Bank of Scotland

Defenders

Procedural Posture

Action of Reduction / Procedure Roll Debate; Judgment on Relevancy

Legal Issues

  1. 1 Whether the pursuers have averred a prima facie relevant defence to the original action for payment to justify reduction of the decree in absence
  2. 2 Whether the existence of security or alleged damages claim provides a defence to the payment action

Ratio Decidendi

The pursuers failed to aver any prima facie relevant defence to the bank's claim for repayment of the overdraft, as their damages claim was manifestly irrelevant and indistinguishable from a previously rejected counterclaim. The existence of security held by the bank was irrelevant to the entitlement to decree for payment. Accordingly, the action for reduction was irrelevant and must be dismissed.

Court Disposition

Action dismissed

Orders

  • Defenders' first plea-in-law upheld
  • Action dismissed