Naghten v National Australia Savings Bank Limited; Naghten v National Australia Bank Limited

The case of *Naghten v National Australia Savings Bank Limited; Naghten v National Australia Bank Limited* [1993] NSWCA 187 concerned appeals from decisions of the Supreme Court of New South Wales. The appellant, Mr. Naghten, brought proceedings against the respondent banks, National Australia Savings Bank Limited and National Australia Bank Limited, alleging breaches of contract and negligence. The core of the dispute revolved around the banks' conduct in relation to certain financial transactions and investments undertaken by Mr. Naghten.

The New South Wales Court of Appeal was required to determine, among other things, whether the banks had breached their contractual obligations to Mr. Naghten, whether they had acted negligently in their dealings with him, and whether any such breaches or negligence had caused him loss. The court also had to consider the application of the Statute of Limitations to certain of the claims.

In its reasoning, the Court of Appeal examined the nature of the relationship between Mr. Naghten and the banks, applying principles of contract law and the law of negligence. The court considered the terms of any agreements in place and the standard of care expected of a financial institution in its dealings with a customer. The court found that while certain claims were time-barred, others were not, and it proceeded to assess the merits of the remaining allegations of breach of contract and negligence.

The Court of Appeal allowed the appeal in part, setting aside some of the original orders and remitting certain matters back to the Supreme Court for further determination. The court also made orders regarding the costs of the appeals.