Playboy Club London Ltd and others v Banca Nazionale del Lavaro  EWHC 2613:
Employer liability for reference.Bank reference given negligently by employee without authority
The issue of a negligent reference given by an employee without actual authority to do so was considered in Playboy Club London Ltd v Banca Nazionale del Lavaro. Playboy casino claimed that Banco Nazionale del Lavaro (the Bank) was negligent when one of the Bank’s employees provided a reference to the casino for a customer, Mr Barakat. An employee of the Bank stated that Mr Barakat was trustworthy up to the extent of £1,6000,000 in any one week. Mr Barakat’s cheques were therefore accepted by the casino, which allowed him to play. He made losses of around £1.25 million and his cheques bounced. The casino claimed that it relied on the Bank reference: the Bank owed a duty to exercise reasonable skill and care and failed to do so.