Contributory Negligence

Standard Chartered Bank v Pakistan National Shipping Corporation and others (No 2) (TLR 3 October CA)

Until the passing of the Law Reform (Contributory Negligence) Act 1945 contributory negligence was a complete defence to an action. It was immaterial that the fault of the claimant was slight and that of the defendant great. The Act remedied that injustice by allowing courts to reduce the claimant’s damages. In the present case the claimant had established its claim of deceit against the defendant when it issued a bill of lading giving a false shipment date knowing that it would be relied on as the date of actual shipment by banks or other persons to whom the bill of lading might be presented under a letter of credit transaction, against payment for goods. However, the claimant had concealed the fact of late presentation from the issuing bank, and even misrepresented that documents were presented in time and the defendant’s argued that because of the claimant’s deception and negligence in failing to note discrepancies which entitled the issuing the bank to refuse payment, the claimant’s damages should be reduced.