Lloyds TSB Foundation for Scotland v Lloyds Banking Group plc [2013] UKSC 3; [2013] WLR (D) 19
“In construing a contractual provision, where there had been an unforeseeable and fundamental change in the legal context since the execution of the contract, the proper approach was to adopt a meaning which best gave effect to the parties’ original intentions and purposes. Where, therefore, a deed executed in 1997 provided for payment to be made by a banking group to a charitable foundation by reference to the group’s pre-tax profit or loss shown in the audited accounts, and a change in accounting practice subsequently required the group consolidated income statement to include, as a profit, a sum representing an unrealised gain on acquisition, the inclusion of such a sum was to be ignored for the purposes of calculating the amount payable to the foundation under the deed.”
WLR Daily, 23rd January 2013
Source: www.iclr.co.uk
