"There are things that can be said to others, and others that can only be said to oneself."
It frequently happens that an investor or an industrialist somewhat concerned about the financial health of a business partner contacts the latter's financial institution to obtain information.
For example, a company hires the services of a contractor for the design and construction of a building until its completion. The contractor had an enviable reputation and doubled its sales every year. Supported by its bank despite liquidity problems, the contractor starts the work.
With over 60% of the work completed, the company's controller doubts the financial health of the contractor. He therefore calls the bank manager, who reassures the controller and confirms that the contractor's line of credit is only used up to 10%. Based on this information, the company issues a check to the contractor. Ten days pass. No subcontractor is paid and the contractor declares bankruptcy.
Feeling aggrieved by the bank's actions, the company takes legal action against it. The evidence shows that the contractor's profitability was seriously declining and that the bank manager should have known this during the telephone conversation with the controller. If he didn't know, it means he didn't understand the nature of the information provided and therefore couldn't respond. If he understood it, he couldn't have responded as he did.
The bank is therefore ordered to reimburse over $800,000 to the company. If the manager had read Paul Valéry, he would have known that "There are things that can be said to others, and others that can only be said to oneself."
*C.S. 500-05-011676-895
