Knox J declined to look at evidence about an agreed overdraft limit, regarding it as a ‘collateral arrangement’. He said: ‘this is a type of transaction in respect of which judicial precedent is a particularly valuable guide to the commercial adviser. It is one of the main justifications for the doctrine of precedent that the … Continue reading In re A Company (No 005009 of 1987); Ex parte Copp: 1989
The court considered the award of damages for the wrongful dishonour of its customer’s cheque. Judges: O’Connor, Parker LJJ Citations: [1988] BTLC 35 Jurisdiction: England and Wales Cited by: Cited – Kpohraror v Woolwich Building Society CA 1996 The Society, acting as a bank, had at first failed to pay its customer’s cheque for andpound;4,550, … Continue reading Rae v Yorkshire Bank plc: CA 1987
The duty of care of a banker to its customer is in ‘interpreting, ascertaining and acting on’ instructions given pursuant to the mandate. A bank is not under a concomitant duty to volunteer to its customer advice about the wisdom of a particular transaction. Judges: Saville J Citations: [1987] 2 FTLR 264 Cited by: Cited … Continue reading Redman v Allied Irish Bank: 1987
US Treasury social security orders were stolen in the USA, and brought to London, where they were endorsed at a bank for payment in the USA. Held: On those facts the ‘acceptance’ of the bills could only have taken place in the USA, and therefore there was no jurisdiction to try charges of execution of … Continue reading Regina v Nanayakkara: CACD 1987
A claim was made for the price of goods sold and delivered. The defendant’s solicitor gave an oral undertaking to his counterpart to procure the execution by directors of his client company of charges over their homes in return for an adjournment sine die. The charges were not executed, and the defendant company went into … Continue reading Udall v Capri Lighting Ltd (in liquidation): CA 1987
A partner in the plaintiff firm of solicitors stole money from them and spent it gambling in the defendant’s casino. The plaintiff cought to recover the money from the defendant, saying that as a gambling debt, no consideration had been given. They sought recovery also from their bankers, who had paid out on firm’s cheques … Continue reading Lipkin Gorman (a Firm) v Karpnale Ltd: 1987
The court accepted that in a case where the garnishee was not indebted within the jurisdiction that might be relevant to the exercise of the court’s discretion. Since, in this case, the debt in question was an English debt, the court’s jurisdiction in relation to foreign debts did not fall for decision. The legislation has … Continue reading SCF Finance Co Ltd v Masri (No 3): 1987
The appeal concerned a final third party debt order (formerly a garnishee order). A judgment in France was registered here for enforcement. That jurisdiction was now challenged. Held: A third party debt order is a proprietary remedy operating by attachment against the property of the judgment debtor. The property so attached is the chose in … Continue reading Societe Eram Shipping Company Limited and others v Hong Kong and Shanghai Banking Corp Ltd, Compagnie Internationale de Navigation: HL 12 Jun 2003
The court discussed the historic availability of set-off in an insolvency: ‘By the turn of the [20th] century, therefore, the authorities showed that debts whose existence and amount were alike contingent at the date of the receiving order, and claims to damages for future breaches of contracts existing at that date, were capable of proof … Continue reading In re Charge Card Services Ltd: ChD 1987
Parties contractual freedom to be respected A clause in a debenture gave a charge which provided that the chargor should not: ‘deal with its book or other debts or securities for money otherwise than in the ordinary course of getting in and realising the same which expression shall not authorise the selling, factoring or discounting … Continue reading In re Brightlife Ltd: ChD 1987
The court was asked whether it was possible to bring contempt proceedings against a solicitor for the breach of an undertaking other than one given to the court. The parties had been employee and employer. On the breakdown of that relationship, the employer took possession of a computer used by the employee. They disputed ownership. … Continue reading Coll v Floreat Merchant Banking Ltd and Others: QBD 3 Jun 2014
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The Board was liable to pay compensation claims from equitable assignees of depositors with a failed bank. They were not to be excluded from making claims. Citations: Gazette 16-Jun-1993, Independent 18-May-1993, Times 11-May-1993 Statutes: Banking Act 1987 58(1) Jurisdiction: England and Wales Citing: Appeal from – Depositors Protection Board v Dalia and Another ChD 18-Nov-1992 … Continue reading Depositors’ Protection Board v Dalia and Another: CA 11 May 1993
The offence of making a fraudulent inducement to make a deposit was complete on the making of the fraudulent statement. Citations: Ind Summary 27-Nov-1995 Statutes: Banking Act 1987 35(1) Jurisdiction: England and Wales Crime Updated: 08 October 2022; Ref: scu.86664
The offence of accepting an unauthorised deposit requires both knowledge of the act and an agreement to it. Where ‘consent’ is alleged against him, a defendant has to be proved to know the material facts which constitute the offence by the body corporate and to have agreed to its conduct of the business on the … Continue reading Attorney General’s Reference (No 1 of 1995); Regina v B; Regina v F: CACD 30 Jan 1996
Proper basis for appeal against Banking tribunal finding of unfitness. Citations: Times 10-Aug-1994 Statutes: Banking Act 1987 28 Jurisdiction: England and Wales Banking Updated: 02 June 2022; Ref: scu.89181
Appeal from decision that declared that the transcripts of certain interviews carried out on behalf of the Board of Banking Supervision in the course of an investigation into the collapse of the Barings Group were and still are subject to the restriction on disclosure contained in Part V of the Banking Act 1987 Judges: Lord … Continue reading Barings Plc and Ors v Co Lybrand and Ors: CA 5 May 2000
An investigation and transcripts of interviews in the course of it, by the Banking Supervisor having been conducted under the Act were subject to the restrictions on disclosure mentioned in the Act. Once however the transcripts had been exhibited to an affidavit used in the course of company director disqualification proceedings, they had become part … Continue reading Barings Plc and Others v Coopers and Lybrand and Others: CA 5 May 2000
Equitable assignees of deposits in a bank where those deposits were protected under the scheme, were entitled to the compensation which would have been paid to the beneficial owners. Citations: Gazette 18-Nov-1992 Statutes: Banking Act 1987 59(1)(a) Cited by: Appeal from – Depositors’ Protection Board v Dalia and Another CA 11-May-1993 The Board was liable … Continue reading Depositors Protection Board v Dalia and Another: ChD 18 Nov 1992
The House was asked as to the meaning of the word ‘depositor’. Regulations were prayed in aid which were made four years after the date of the enactment. Held: The protection given by the Depositor Protection Scheme does not extend to equitable assignees of deposits. Such assignees are not depositors within the meaning of the … Continue reading Depositors’ Protection Board v Dalia: HL 20 May 1994
A depositor who had placed sums with an illegal deposit taking business was not entitled to claim that sum held in trust because he still had a statutory claim under contract with the deposit taker. Citations: Times 30-Apr-1998, Gazette 07-May-1998, [1998] Lloyd’s Rep Bank 185 Statutes: Banking Act 1987 Cited by: Cited – Jeremy D … Continue reading Box and Others v Barclays Bank Plc: ChD 30 Apr 1998
A banker disclosing information about a customer’s business affairs save under lawful requirement, would commit a criminal offence. The head of a member of a Federation, the Ruler of Abu Dhabi, was not entitled to immunity while the President of the entity of which Abu Dhabi formed part, namely the United Arab Emirates, was entitled … Continue reading Bank of Credit and Commerce International (Overseas) Ltd (In Liqidation) and Others v Price Waterhouse and Others, Abu Dhabi Etc: ChD 25 Jun 1997
A person required to answer questions under the section may not refuse to answer on the ground of self-incrimination. (Dillon LJ) ‘It is plain to my mind – and not least from the Cork Report – that part of the mischief in the old law before the Insolvency Act 1985 was the apparent inability of … Continue reading Bishopsgate Investment Limited v Maxwell: CA 1999
The applicant sought a declaration that the defendant had acted in breach of the Act, in accepting sums by way of deposit, without being authorised, and had made prohibited statements to attract such deposits. Could a civil court make such a finding which would be equivalent to a finding of guilt of a criminal offence? … Continue reading Financial Services Authority v Rourke: ChD 19 Oct 2001
The appellant challenged a formal statutory demand which had led to his bankruptcy. The demand had included the anticipated cost of realising the charged property, and also had been inflated to allow for extra costs of dealing the appellant who was perceived to be recalcitrant and unco-operative. Held: The statutory demand could only include sums … Continue reading Owo-Samson v Barclays Bank Plc, Boyden: CA 21 May 2003
A flat had been repossessed by the bank. The parties disputed whether items were fixtures and charged with the land or not. Held: The judge had correctly analysed and applied the law of fixtures and fittings. The appeal failed save to a limited extent. ‘The tests, in the case of an item which has been … Continue reading Botham and others v TSB Bank Plc: CA 30 Jul 1996
The parties came together in a limited partnership to develop property. The appeal was against a refusal to grant summary judgment on a claim that one party had been induced to enter the contract by a fraudulent misrepresentation. Held: In this case, the defendant knew of the unlawful activity, and had no arguable defence, and … Continue reading Criterion Properties Plc v Stratford UK Properties and others: CA 18 Dec 2002
The claimants shipped goods to Chile through the defendant shipping line. The goods were lost. The shippers rights of suit under the contract of carriage had been transferred to a third party. Held: The shippers as the bank’s principals couldn’t be the holders of the bills endorsed to the banks, and the rights of suit … Continue reading P and O Nedlloyd B v Dampskibsselskabet Af, 1912, Aktieselskab, Aktieselskabet Dampskibsselskabet Svendborg v Utaniko Limited, East West Corporation: CA 12 Feb 2003
The defendant appealed his conviction for obtaining property by deception where part of the offence had taken place abroad. Held: Smith should be overturned. The last act or terminatory theory remains the binding common law of England and Wales. The correct rule was that before an English court could try an offence it was necessary, … Continue reading Regina v Manning: CACD 24 Jun 1998
A neighbour challenged the use of houses as temporary accommodation for homeless youths. The properties housed up to six youths, who, the council claimed lived together as a single unit, and therefore came within Class C3. Held: Nothing in the case law suggested that such a group must constitute a household before coming together within … Continue reading Regina (on the application of Hossack) v Kettering Borough Council and another: CA 25 Jun 2002
Appeal against setting aside of statutory demand disputed as to amount of liability under contract. Held: The guarantors’ liability under the guarantee was immediately payable by them, without the need for a demand, before service of the statutory demands. Judges: David Richards J Citations: [2007] EWHC 1401 (Ch) Links: Bailii Jurisdiction: England and Wales Citing: … Continue reading TS and S Global Ltd v Fithian-Franks and others: ChD 18 Jun 2007
Licensees appealed against the grant of judicial review of decisions granting special removal of old on-licences for premises. The grant had been challenged on the basis that the magistrates had had no jurisdiction to make the award because the premises were unoccupied. The relevant legislation had been repealed by the time the matter reached the … Continue reading Bushell and Others, Regina (on the Application of) v Newcastle Upon Tyne Licensing Justices and Another: HL 15 Feb 2006
Westmaze were mechanical engineers. They gave a charge to secure borrowings, which described itself as a fixed charge. Held: A Charge over a company’s book and trading assets was in fact floating even though described as a fixed charge unless it could be shown clearly that the creditor took the right to control the assets … Continue reading In Re Westmaze Ltd (In Administrative Receivership): ChD 15 May 1998
The court was asked whether a charge given over book debts in a debenture was floating or fixed. Held: Since the charge asserted some control over receipt of the payments, it was a fixed charge. Upon payment into the account, title to the proceeds passed immediately to the bank, subject to its contract with the … Continue reading National Westminster Bank Plc v Spectrum Plus Ltd; In re Spectrum Plus: CA 26 May 2004
The husband and wife had signed a bank mandate allowing the bank to act upon the authorisation of either of them. The wife complained that the bank should not be able to recover from her any sums expended by the husband. Held: The mandate extended to all borrowings on the joint account and without limit. … Continue reading Sandra Estelle Fielding v The Royal Bank of Scotland Plc: CA 11 Feb 2004
The claimant sought an order to restrain proceedings in New York. The parties were based in Canada and the Netherlands, with places of business in New York and London also. The swap agreement underlying the claim provide for it to be governed non-exclusively by the laws of England, but which envisaged other courts applying it. … Continue reading Royal Bank of Canada v Cooperatieve Centrale Raiffeisen-Boerenleenbank Ba: CA 23 Jan 2004
(New Zealand) A charge had been given by a company over its book debts. The charge was expressed to create a fixed charge over debts uncollected when a receiver was appointed, so that on collection they became payable to the bank. Until the receiver was appointed, the charge claimed to be a floating charge, and … Continue reading Agnew and Kevin James Bearsley v The Commissioner of Inland Revenue, and Official Assignee for the Estate In Bankruptcy of Bruce William Birtwhistle and Mark Leslie Birtwhistle: PC 5 Jun 2001
A bank owed debts to a judgment debtor customer on accounts held both in London and in Africa. It was accepted that the former were subject to a garnishee order. The dispute concerned the latter. Held: The bank is no doubt indebted to the judgment debtor and the bank is within the jurisdiction. The Order … Continue reading Richardson v Richardson: KBD 1927
Stolen travellers’ cheques were cashed in France and then presented through normal banking channels to a bank in England. The first and main ground of appeal was that no offence had been thereby committed within the jurisdiction of the Crown Court, because the ‘execution’ of the valuable security, by its ‘acceptance’, had taken place in … Continue reading Regina v Beck: CACD 1984
The relationship of banker and customer is that of agent and principal: ‘Primarily, the relationship between a banker and customer is that of debtor and creditor. But quoad the drawing and payment of the customer’s cheques as against the money of the customer’s in the banker’s hands the relationship is that of principal and agent.’ … Continue reading Barclays Bank plc v Quincecare Ltd: QBD 1992
A partner in a firm of solicitors stole money from them, and spent it gambling with the defendants. The firm sued also their banker, who had been held to be aware of the defaulting partner’s weaknesses and activities. Held: The solicitors could not recover from the gambling house. The defendants gave valuable consideration in good … Continue reading Lipkin Gorman v Karpnale Ltd: CA 1989
An injunction was sought against a Panamanian ship-owning company to restrain it from disposing of a fund, consisting of insurance proceeds, in England. The claimant for the injunction was suing the company in a Cyprus court for damages and believed the company to have no other assets from which to meet the hoped-for damages award … Continue reading Siskina (owners of Cargo lately on Board) v Distos Compania Naviera SA: HL 1979
An agreement between the parties for assignment or novation of a credit agreement, contained a ‘take out’ agreement (‘TOA’). The defendant began proceedings in California to rescind the agreement, and the claimants obtained summary judgement under the TOA and an injunction to prevent the defendants proceeding in California. The defendants appealed. There were allegations of … Continue reading National Westminster Bank v Utrecht-America Finance Company: CA 10 May 2001
The plaintiff firm of solicitors sought to recover money which had been stolen from them by a partner, and then gambled away with the defendant. He had purchased their gaming chips, and the plaintiff argued that these, being gambling debts, were worthless, and that therefore no consideration had been given. Held: The casino’s defence succeeded. … Continue reading Lipkin Gorman (a Firm) v Karpnale Ltd: HL 6 Jun 1991
The club had enjoyed a concession from the council to operate pleasure flights from the airport operated by the council. They were invited to bid for a new concession subject to strict tender rules. They submitted the highest bid on time, but the council staff did not open the bid until after the time, and … Continue reading Blackpool and Fylde Aero Club Ltd v Blackpool Borough Council: CA 25 May 1990
The claimants had pursued compensation over many years from the defendants alleging various kinds of misfeasance in regulating the bank BCCI. The action had collapsed. Held: ‘this was extraordinary litigation which came to an abrupt albeit long overdue conclusion’ when the creditors called on the liquidators to abandon the action. The parties now disputed the … Continue reading Three Rivers District Council and others v The Governor and Company of the Bank of England: ComC 12 Apr 2006
The company granted a debenture to the claimant purporting to secure its book debts. The company went into liquidation. The liquidator challenged the bank’s charge. Held: Siebe was wrongly decided. The charge was ineffective over the book debts. Vice Chancellor Andrew Morritt [2004] 2 WLR 783, [2004] 1 All ER 981, [2004] BCC 51, [2004] … Continue reading National Westminster Bank Plc v Spectrum Plus Ltd and others: ChD 15 Jan 2004
It was possible to create a fixed charge over present and future book debts and on its true construction, the debenture granted to Barclays Bank Ltd in this case had done so. If the chargor of book debts, having collected the book debts, ‘[had] had the unrestricted right to deal with the proceeds of any … Continue reading Siebe Gorman and Co Ltd v Barclays Bank Ltd: ChD 1979
(Supreme Court of the Republic of Ireland) A debenture conferred a fixed charge on book debts. It specifically provided that withdrawals from the account to which the proceeds of the book debts had to be credited might only be made with the prior consent in writing of the Bank. This additional restriction on the ordinary … Continue reading In Re Keenan Bros Ltd: 1986
Former HL decision in Siebe Gorman overruled The company had become insolvent. The bank had a debenture and claimed that its charge over the book debts had become a fixed charge. The preferential creditors said that the charge was a floating charge and that they took priority. Held: The appeal was allowed. The debenture, although … Continue reading National Westminster Bank plc v Spectrum Plus Limited and others: HL 30 Jun 2005
The court considered the interpretation of the 1882 Act, which was said to be a codifying Act. Held: An Act is to be ascertained in the first instance from the natural meaning of its language and is not to be qualified by considerations deriving from the antecedent law.Lord Watson said: ‘The decision of the Queen’s … Continue reading Bank of England v Vagliano Brothers: HL 5 Mar 1891
The landowner sought to use houses as temporary accommodation for young people in need. The council asserted that this use of each of the properties was ‘use as a dwelling house by the residents living together as a single household’ under class C3. Held: The critical question was whether the individuals in the house had … Continue reading Hossack, Regina (on the Application of) v Kettering Borough Council and Another: Admn 25 Mar 2002
The Office sought a declaration that the respondent and other banks were subject to the provisions of the Regulations in their imposition of bank charges to customer accounts, and in particular as to the imposition of penalties or charges for the breach of the overdraft limits. Held: The relevant terms were not exempt from assessment … Continue reading Office of Fair Trading v Abbey National Plc and seven Others: ComC 24 Apr 2008
The claimant sought relief by way of judicial review from a policy statement issued by the defendants regarding the alleged widespread misselling of payment protection insurance policies, and the steps to be taken to compensate the purchasers. They objected that the policy statement would require them to act beyond their obligations in law. Held: The … Continue reading British Bankers Association, Regina (on The Application of) v The Financial Services Authority and Another: Admn 20 Apr 2011
The Society, acting as a bank, had at first failed to pay its customer’s cheque for andpound;4,550, even though there were sufficient funds. The bank said that it had been reported lost. The customer sought damages to his business reputation. Held: The bank was in breach of contract and in principle liable for injury to … Continue reading Kpohraror v Woolwich Building Society: CA 1996
A ship charterer discovered that the bills of lading were incorrect, but delayed withdrawal from the charter for 13 days. They now sought leave to appeal the arbitration award against them. Held: Though he deprecated extending the use of the expression ‘purposive construction’ from the interpretation of statutes to the interpretation of private contracts, Lord … Continue reading Antaios Compania Naviera SA v Salen Rederierna AB (‘the Antaios’): HL 1984
Wife in Occupation had Overriding Interest The wife had made a substantial financial contribution to the purchase price of the house which was registered only in her husband’s name, and charged to the bank. The bank sought possession. The wife resisted saying that she had an overriding interest. Held: Her equitable interest was not only … Continue reading Williams and Glyn’s Bank Ltd v Boland: HL 19 Jun 1980
The applicants alleged misfeasance against the Bank of England in respect of the regulation of a bank. Held: The Bank could not be sued in negligence, but the tort of misfeasance required clear evidence of misdeeds. The action was now properly pleaded, and the bank knew the case it had to answer. The issue of … Continue reading Three Rivers District Council and Others v Governor and Company of The Bank of England: HL 18 May 2000
The Board considered a banking transaction and the application of a chargeback by the bank, under which a loan was made only after a deposit by a third party against which it was secured, and particularly in the context of the insolvency of the bank itself. Held: Lord Mustill discussed the need to construe a … Continue reading Tam Wing Chuen v Bank of Credit and Commerce Hong Kong Ltd: PC 1996
The test of whether a person who received funds held them on constructive trust, was not whether he himself was dishonest, but rather whether he had knowledge of circumstances which made it unconscionable to hold on to the money received. In respect . .
Jamaica – The customer appealed against refusal of an order requiring its bank not to close the customer accounts after the customer had been accused of fraud. There was no evidence that the account was being used unlawfully.
Held: In the . .
Criterion sought to set aside a shareholders agreement. Their partner had said they were concerned that another party was taking Criterion over and that this would put at risk their working relationships. The agreement sought to add a poison pill to . .
