Bank of Credit and Commerce International SA v Ali

Bank of Credit and Commerce International SA v Ali [2001] UKHL 8 is an English contract law case in the House of Lords on the limits of freedom of contract, and the contra proferentem principle.

Facts[]

Mr Naaem, an employee of BCCI SA, claimed damages for economic loss after not having been able to find a job following his redundancy in 1990. BCCI, once the world’s 7th largest bank, had gone insolvent after mass fraud because of the stigma. However, Naaem and other employees had signed a release form saying the redundancy pay was ‘in full and final settlement of any claims... of whatsoever nature that exist or may exist’. BCCI argued Naaem was bound.

Judgment[]

The House of Lords by a majority held that because the exposure of fraud would not have been contemplated when Mr Naeem signed, the release did not actually, despite the words, excluded a stigma damages claim.

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See also[]

• English contract law

References[]

• Bank of Credit and Commerce International SA v. Munawar Ali, Sultana Runi Khan and Others [2001] UKHL 8 (1 March 2001)