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ARTICLE · 28 SEPTEMBER 2018

Legal Developments In Construction Law - September 2018

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A bank was asked to provide a credit reference in respect of a customer.

United KingdomReal Estate and Construction

1. Supreme Court rules bank owes no duty of care for gambler's credit reference

A bank was asked to provide a credit reference in respect of a customer. The request came from Burlington Street Services Ltd, a company acting for the Playboy Club, but the true purpose of the inquiry, and the fact that the reference was required for the benefit of another company was not disclosed. The bank confirmed that the customer had an account with them and was trustworthy up to £1.6 million per week but the account was not opened until two days after the reference was sent and had a nil balance until it was closed two months later. The Club was left with losses when the customer's cheques were returned unpaid and sued the bank, claiming that the bank owed it a duty of care in giving the reference.

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This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.

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