Dextra Bank and Trust Company Limited v Bank of Jamaica: PC 26 Nov 2001

(Jamaica) A cheque was drawn which was used as part a complex financial arrangement intended to purchase foreign currency to work around Jamaica’s foreign exchange control regulations. It was asserted that by presenting the cheque used in the deception, it had been converted. The principle question was whether the cheque had been delivered as required under the Act. It was argued that the agent delivering the cheque was acting outside any authority entrusted to him by the drawer, and that accordingly no delivery was made. However his involvement was merely adventitious and could not invalidate delivery. The claimants sought restitution. The appellants asserted that they could rely upon the defence of ‘change of position’ and that the court should consider the relative degrees of fault of the parties. The court held that it was wrong to include any such calculation. ‘Their Lordships are, however, most reluctant to recognise the propriety of introducing the concept of relative fault into this branch of the common law, and indeed decline to do so. They regard good faith on the part of the recipient as a sufficient requirement in this context.’ The appeal was dismissed.
Lord Bingham of Cornhill, Lord Goff of Chieveley, Lord Hobhouse of Woodborough, Sir Martin Nourse, Sir Patrick Russell
[2002] 1 All ER (Comm) 193
England and Wales
CitedMarfani and Co Ltd v Midland Bank Ltd CA 1968
A rogue opened a new bank account under a false name with the help of an incorrect reference from a valued customer.
Held: When an account is fraudulently opened with the bank in the name of another person by someone pretending to be that . .
CitedLipkin Gorman (a Firm) v Karpnale Ltd HL 6-Jun-1991
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 . .

Cited by:
CitedRose v AIB Group (UK) plc and Another ChD 9-Jun-2003
The bank had received and paid substantial sums from the company before the petition for insolvency had been presented, and had discharged the director’s charge on his house. The liquidator sought restitution under the Act. The bank replied that it . .
CitedNiru Battery Manufacturing Company, Bank Sepah Iran v Milestone Trading Limited CA 23-Oct-2003
The claimant had contracted to purchase lead from some of the defendants. There were delays in payment but when funds were made available they should have been repaid. An incorrect bill of lading was presented. The bill certified that the goods had . .
CitedCommerzbank Ag v Price-Jones CA 21-Nov-2003
The respondent had received a bonus of andpound;250,000. His employers wrote to him in error increasing it. He later chose to stay rather than take redundancy because he now expected the full amount. He resisted an order for restitution. The . .

Lists of cited by and citing cases may be incomplete.
Updated: 12 September 2021; Ref: scu.166873