[extract] What damages, for example, is the customer entitled to if the paying bank breaches its duty of care in regard to the customer’s cheques? The face value of the cheques? The face value of the cheques plus the interest that could have been earned if there was no breach? The face value of the cheques plus damages for business loss?
As the true owner of a cheque, what damages is the plaintiff entitled to in conversion if a bank collects the cheques for a rogue? Just the face value of the cheques? Or damages for the face value of the cheques plus damages for business losses?
These are some of the issues raised in Nemur Varity Pty Ltd v NAB and the appeal case National Australia Bank Ltd v Nemur Varity Pty Ltd decided on 1 March 2002, both being unreported judgements. Other important issues raised are whether the banker-customer relation is subject to concurrent duties in contract and tort and whether consequential damages can be claimed for conversion of a chattel.