Nedcor Bank Ltd t/a Nedbank v Lloyd-Gray Lithographers (Pty) Ltd

The respondent was the true owner of four crossed and restrictively endorsed cheques drawn in its favour. The cheques were stolen by a third party, S, who unlawfully deposited them into his account with Nedbank without any endorsement. Nedbank, acting as collecting bank, negligently collected payment of the cheques for S. The drawee banks honoured the cheques, discharging both the cheques and the underlying debts. As a result, the respondent suffered loss equal to the face value of the cheques. The respondent had delictual claims against both S (the thief) and Nedbank, but instituted action only against Nedbank.

The appeal was dismissed with costs. Nedbank was held liable to the respondent for the full amount of the loss, being the aggregate face value of the cheques.

The case authoritatively confirms that, under South African common law, concurrent wrongdoers who independently cause the same loss are liable in solidum. It clarifies that a plaintiff’s damages are not reduced by the mere existence of a claim against another wrongdoer, even where that other wrongdoer is solvent. The judgment also disapproves the approach adopted in Holscher v Absa Bank regarding the computation of damages in cheque-collection cases.