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Contracts Keyed to George
Jackson v. Royal Bank of Scotland
Facts
James Jackson Barrie Stewart Davies (plaintiffs), working as Samson Lancastrian, imported dog chews from Thailand and sold them to an organization called Economy Bag (EB). Davies later died. The Royal Bank of Scotland (the Bank) (defendant) acted as a delegate between the two organizations, issuing transferable letters of credit to EB for Samson named as recipient each time a request for dog chews was set by EB. By mistake, the Bank sent EB a letter demonstrating that Jackson was gaining a 19 percent markup on each transaction. Although EB knew that Jackson was making a benefit, he didn't know the rate. From there on, EB ended its business association with Jackson. Jackson documented suit against the Bank for breach of the agreement and seeking damages for the loss of the opportunity to make future profits from its agreement with EB. The trial court held for Jackson and granted damages in view of the conclusion that his business association with EB could have continued for no less than four extra years. The Bank appealed. The court of appeal affirmed, yet limited damages to one year from the Bank’s breach of the agreement. The Bank appealed the matter to the House of Lords.
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