- Abuse of process—bringing new proceedings in deceit (Playboy Club London Limited v Banca Nazionale del Lavoro SpA)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: The Court of Appeal held that it was not an abuse of process for Playboy Club London Ltd (the Club) to bring fresh proceedings in deceit against Banca Nazionale Del Lavoro SpA (BNL) where the Club had previously brought (and lost) its claim against BNL for negligent misstatement (the Negligence Claim). During the course of the Negligence Claim and, importantly, after the hearing had commenced, evidence came to light that an employee of BNL had acted dishonestly in signing a reference attesting to the credit worthiness of a customer of the Club, whereby the Club advanced monies to that customer in exchange for cheques which subsequently bounced. While the Club could have brought the claim in deceit at the same time as the Negligence Claim, this did not mean that it should have and that it was an abuse of process for it to do so now. Written by Michael Rhode, senior associate at Trowers & Hamlins LLP.
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