A Barclays bank employee has won a £47,960 compensation battle which began after house prices crashed during the last recession.

Office manager Roger French was forced to put his Radley home on the market in January, 1989, when Barclays asked him to move to east London, as a life insurance division manager.

He put his home on the market for £195,000 and with the help of a £190,000 bridging loan from Barclays, bought a new home in Walsingham Way, Billericay, Essex.

But the recession struck and the Radley property remained unsold for months, the court heard yesterday (THURS).

When in October, 1989, the bank announced it would start charging interest on his bridging loan, Mr French felt he had no choice but to sell his former home to the bank's agent for £147,500, losing £40,000 in the process. The house was eventually sold for £110,000 and further depreciation of £37,500 was borne by the bank.

Mr French, who joined Barclays in 1967 as a clerk, felt he had been unfairly treated and launched legal action against his employer. In 1996, Judge William Barnett awarded Mr French £47,960 damages, saying Barclays had breached the duty of trust and confidence it owed him as an employee.

At the Appeal Court hearing, Barclays argued Mr French had been given "reasonable notice" that his right to an interest-free loan "extended to no more than six months".

Lord Justice Waller dismissed yesterday's appeal by Barclays - which could pose problems for the bank, which is fighting 39 similar claims., adding: "He had been asked to move. A bridging loan interest-free had been sanctioned to enable him to do so.

"His expectation would be that the bank would not wish him to suffer financial loss by virtue of relocation."

The judge ruled out the possibility of increasing Mr French's award and Lord Justice Hobhouse and Lord Justice Robert Walker agreed.

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