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Lloyd's Law Reports

CREDIT LYONNAIS BANK NEDERLAND N.V. (NOW GENERALE BANK NEDERLAND N.V.) v. EXPORT CREDIT GUARANTEE DEPARTMENT

[1998] 1 Lloyd's Rep. 19

COURT OF APPEAL

Before Lord Justice Stuart-Smith, Lord Justice Hobhouse and Lord Justice Thorpe

Banking - Export Credit Guarantee - Construction - Comprehensive bank guarantee and specific bank guarantee - Default of exporter - Bank claimed under guarantees in contract and tort - Allegations of misrepresentation and non-disclosure - Whether bank failed to verify validity and enforceability of bills of exchange - Duty of disclosure under contract of guarantee - Whether employee of ECGD had actual or ostensible authority to issue guarantees of bills of exchange - Breach of duty in relation to termination of insurance policy underlying CBG.

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