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High Court refuses to grant interlocutory injunction restraining petrol supplier from demanding sums from bank on foot of guarantee to customer.
Contract law - negligence - misrepresentation - application for injunction restraining defendants from enforcing guarantee - contract for purchase of fuel - provision of bank guarantee - allegation that defendant had been overcharging plaintiff - demand by defendant for payment of €375K following issue of plenary summons - subsequent demand to bank for payment on foot of guarantee - whether court should intervene to restrain payment on foot of contract - whether exceptional circumstances arose - whether defendant could honestly have believed it was entitled to demand payment on foot of guarantee - whether court in position to form a view on the factual dispute between the parties - balance of convenience - lack of candour on ex parte application.
Kirwan on Injunctions – Law and Practice (2008, Thomson Round Hall) at p. 438 et seq
Breslin on Banking Law (2nd Ed., 2007, Thomson Round Hall) at para. 12 – 09 et seq
Bolivinter Oil SA v. Chase Manhattan Bank & Ors. [1984] 1 All ER 351
Hapgood Paget’s Law of Banking (13th Ed., 2007) (at para. 34.11)
Deutsche Ruckversicherung v. Walbrook [1996] 1 All ER 791
United Trading Corp. SA v. Allied Arab Bank [1985] 2 Lloyd’s Rep. 554
United City Merchants (Investments) Ltd. v. Royal Bank of Canada [1983] 1 AC 168
American Cyanamid Co. v. Ethicon Ltd. [1975] 1 All ER 504
Campus Oil Ltd. v. Minister for Industry and Energy (No. 2) [1983] I.R. 88
Maha Lingam v. Heath Service Executive [2006] ELR 137
Allied Irish Banks v. Diamond & Ors. [2011] IEHC 505
G.P.A. Group Plc v. Bank of Ireland [1992] 2 I.R. 408
Bambrick v. Cobley [2006] 1 ILRM 81
Note: This is intended to be a fair and accurate report of a decision made public by a court of law. Any errors should be notified to the editor and will be dealt with accordingly.
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