Eurocentral 'letter of comfort' not binding on Bank of Scotland.

11 August 2011

Lord Menzies has dismissed a claim for just under £1m brought by Regus (Maxim) Ltd against the Bank of Scotland. The Bank had issued a "letter of comfort" regarding funds held with regard to fit-out costs incurred at premises at Eurocentral. Regus argued at debate that the letter clearly imported a binding obligation, and sought decree de plano. The Bank, on the other hand, argued that the claim was irrelevant, as the letter did not evince an intention on the part of the Bank to be bound to make payment. Lord Menzies has ruled that the letter was not binding on the bank, and amounted to an expression of comfort only. He also ruled that alternative claims advanced by Regus, based on ius quaesitum tertio and negligent misrepresentation, were irrelevant.

Regus were represented by Jonathan Lake QC, and the Bank by Roddy Dunlop QC and Ross McClelland, Advocate - all of Axiom Advocates.

http://www.scotcourts.gov.uk/opinions/2011CSOH129.html