NIRU BATTERY MANUFACTURING CO. v. MILESTONE TRADING LTD. [2003] EWCA Civ 1446

[2004] 1 Lloyd's Rep. 344

COURT OF APPEAL

Before Dame Elizabeth Butler-Sloss, President, Lord Justice Clarke and Lord Justice Sedley

Banking - Sale of goods - Letter of credit - Seller of goods procuring false bill of lading - Inspectors certifying that goods had been loaded - Whether inspectors owed duty of care to buyers to ensure that goods had been loaded - Warrants for goods held by seller’s bank - Seller’s bank reselling lead - Buyer’s bank then remitting payment on behalf of buyer - Claim for restitution by buyer’s bank - Whether seller’s bank acted fraudulently - Whether seller’s bank could rely on defence of change of position.