{"id":14279,"date":"2023-07-10T00:53:22","date_gmt":"2023-07-10T00:53:22","guid":{"rendered":"https:\/\/careerinlaw.net\/uk\/?p=14279"},"modified":"2023-11-23T09:45:47","modified_gmt":"2023-11-23T14:45:47","slug":"case-summary-lloyds-v-harper-1880-16-ch-d-290","status":"publish","type":"post","link":"https:\/\/careerinlaw.net\/uk\/case-summary-lloyds-v-harper-1880-16-ch-d-290","title":{"rendered":"Case Summary: Lloyd&#8217;s v Harper [1880] 16 Ch D 290"},"content":{"rendered":"\n<h2 class=\"wp-block-heading\" id=\"h-legal-principles-and-key-points\"><strong>Legal Principles and Key Points:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the case of Lloyd&#8217;s v Harper [1880] 16 Ch D 290, it was established that the death of a guarantor will not end a guarantee. The guarantee agreed can be the subject of a trust.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Facts of Lloyd&#8217;s v Harper [1880] 16 Ch D 290<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Father of D (Harper) wrote a letter to Lloyd\u2019s (C) and gave a guarantee to the committee of C for D\u2019s underwriting engagements as a member there<\/li>\n\n\n\n<li>During this time, C were a voluntary association, and one could not be excluded from becoming a member unless they were declared bankrupt\/insolvent<\/li>\n\n\n\n<li>C then became incorporated<\/li>\n\n\n\n<li>The father passed, C were given notice and 2 years later the son had become bankrupt and thus his membership ceased<\/li>\n\n\n\n<li>C sought a claim against the guarantee the father had provided<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Issues in Lloyd&#8217;s v Harper [1880] 16 Ch D 290<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Did the guarantee the father provided on behalf of his son be enforced after the father\u2019s death?<\/li>\n\n\n\n<li>Were the father\u2019s estate accountable for the son\u2019s bankruptcy and subsequent membership loss?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Held by the Court of Appeal<\/strong><\/h2>\n\n\n\n<p>Affirmed the previous decision; substantial damages granted. The father\u2019s death did not end the guarantee, but moved to his estate.<\/p><div id=\"caree-544272993\" class=\"caree-within-the-content caree-entity-placement\" style=\"margin-left: auto;margin-right: auto;text-align: center;\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png\" alt=\"\"  srcset=\"https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1.png 448w, https:\/\/careerinlaw.net\/uk\/wp-content\/uploads\/sites\/3\/2023\/10\/MRF-169650-in-article-336x280-1-300x250.png 300w\" sizes=\"(max-width: 448px) 100vw, 448px\" width=\"448\" height=\"373\"  style=\"display: inline-block;\" \/><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Lord Justice James<\/strong><\/h2>\n\n\n\n<p>There was no a limit to the guarantee. [314]<\/p>\n\n\n\n<p>As to the D\u2019s argument that the Cs suffered no loss and so could only claim for nominal damages, James LJ stated:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cThat might be true if Lloyd&#8217;s were not trustees, but I am of opinion that Mr. Justice Fry was well warranted in the conclusion at which he arrived, that the engagement was made with the committee as trustees for and on behalf of the persons beneficially interested.\u201d [315]<\/li>\n<\/ul>\n\n\n\n<p>Cs were able to sue despite the argument that they were not the persons with who the contract was made as the Parliament Act which turned them into a corporation and transferred the committee\u2019s dealings to them applied. [315]<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Lord Justice Lush<\/strong><\/h2>\n\n\n\n<p>Allowing the son and his father\u2019s estate to walk away from this would disrupt the law of contract:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u201cLloyd&#8217;s, having sustained no damage themselves, could not recover for the losses sustained by third parties by reason of the default of Robert Henry Harper as an underwriter. That, to my mind, is a startling and an alarming doctrine, and a novelty, because I consider it to be an established rule of law that where a contract is made with A. for the benefit of B., A. can sue on the contract for the benefit of B., and recover all that B. could have recovered if the contract had been made with B. himself.\u201d [321]<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Legal Principles and Key Points: Facts of Lloyd&#8217;s v Harper [1880] 16 Ch D 290 Issues in Lloyd&#8217;s v Harper [1880] 16 Ch D 290 Held by the Court of Appeal Affirmed the previous decision; substantial damages granted. The father\u2019s death did not end the guarantee, but moved to his estate. Lord Justice James There [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":13103,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-14279","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-case-summaries","8":"entry"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.4 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Case Summary: Lloyd&#039;s v Harper [1880] 16 Ch D 290 | Careerinlaw.net | UK<\/title>\n<meta name=\"description\" content=\"In the case of Lloyd&#039;s v Harper [1880] 16 Ch D 290, it was established that the death of a guarantor will not end a guarantee. 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