Court case(1830) 1 B and Ad 415

The plaintiff was a customer of the defendants, bankers, and kept an account with them. He paid in a sum of money, and later the same day drew a cheque on the account. When the cheque was presented, the bankers refused to pay it, saying there were insufficient funds, although in fact the money paid in had made the balance sufficient to meet the cheque. The cheque was paid the next day. The plaintiff could not show that he had suffered any actual pecuniary loss or damage to his credit by the refusal, but sued the bankers for the wrongful dishonour.

The Court held that the plaintiff was entitled to recover, though he had proved no actual damage. The bankers were under a duty to honour the customer's cheques when they held sufficient funds, and their refusal was a violation of the customer's legal right. Such a violation imports damage in law, and the customer was entitled to at least nominal damages without any proof of special loss. The decision applied the principle of Ashby v. White that the infringement of a legal right is itself actionable.