Twinsectra Ltd and Haypsort Properties Ltd v Lloyds Bank plc, 23/4/18
Judgment was handed down by Jeremy Cousins QC (sitting as a Deputy Judge of the High Court) in favour of Lloyds Bank plc. The Claimant companies claimed declarations that a suite of third-party security given by them in support of a £10 million Stand-By Letter of Credit Facility was invalid. The Court gave summary judgment for the Bank because it found that the Claimants’ conduct of earlier High Court proceedings against a former director had constituted an election to treat the security as valid. That was an irrevocable election between inconsistent rights and/or between inconsistent remedies and it bound the Claimants for all purposes. The Court also found that the claim offended the rule against approbation and reprobation in its modern form, that it amounted to an abuse of process and that it should be dismissed on those grounds also.
Jonathan Davies-Jones QC acted for Lloyds Bank plc, instructed by Hogan Lovells LLP.
A copy of the judgment can be found here.