In an action against a bank by one of its customers, who had transferred to the bank in security of advances shares of a certain denomination, the pursuer claimed that on repayment of the loan the bank was bound to account to her for its intromissions with the specific shares lodged, and that it was not entitled to tender a corresponding amount of shares of the same denomination. In the course of the action it was found in fact by the First Division, on appeal from the Sheriff Court, that the bank credited the pursuer in its books with the quantity of shares transferred without making any note or keeping any record of the denoting numbers of the shares, and treated them as interchangeable with the shares of the same denomination held by it on account of other customers, that in the transactions in question the bank acted throughout in accordance with their usual practice, and that this practice was known to and approved of by the firm of stockbrokers whom the pursuer employed as her agents to carry through the transactions with the bank. Held ( aff. judgment of the First Division) that on the facts so found the defenders were not bound to account to the pursuer for their intromissions with the specific shares in question, and appeal dismissed.
Judges:
Viscount Haldane, Viscount Finlay, Viscount Cave, Lord Dunedin, and Lord Wrenbury
Citations:
[1922] UKHL 312, 59 SLR 312
Links:
Jurisdiction:
England and Wales
Banking
Updated: 31 January 2022; Ref: scu.632801