Lloyds Bank plc v McBains Cooper

Negligence – Information or advice. The Technology and Construction Court, in a further judgment, held that the defendant project manager was liable to the claimant bank, taking account of contributory negligence, for a net sum of £415,439.95 in respect of sums advanced by the bank to a borrower in respect of a development, which would not have been advanced if the defendant had not been negligent. The court held that the duties owed to the bank by the project manager had included a duty to protect the bank from advancing money in circumstances in which, if properly informed, the bank would have decided not to do so and would have terminated the facility. Further the project manager had owed a duty to consider the likely cost to complete the development, which in the present case had been incomplete after the exhaustion of the loan funds.

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