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These cases are from the lawindexpro database. They are now being transferred to the swarb.co.uk website in a better form. As a case is published there, an entry here will link to it. The swarb.co.uk site includes many later cases.  















Banking - From: 1990 To: 1990

This page lists 6 cases, and was prepared on 03 April 2018.

 
Re K (Restraint Order) [1990] 2 QB 298
1990

Otton J
Criminal Practice, Banking
An order under the Act prohibited K from disposing of his assets, including a deposit account with the bank. K had an overdraft facility secured against the deposit account. The bank sought to set off the overdraft against the sums held on deposit. Held. the bank was free to consolidate the accounts. Its actions would not reduce K's assets.
Otton J said: "In my judgment, the right of a bank to combine [accounts] is well established and is fundamental to the bank/customer relationship. It is a means of establishing the indebtedness of the customer to the bank and the bank to the customer. In exercising this right a bank is not asserting a claim over the moneys, nor is it in conflict with the claims of the Crown. It is merely carrying out an accounting procedure so as to ascertain the existence and amount of one party's liability to the other. This can only be ascertained by discovering the ultimate balance of their mutual dealing."
Drug Trafficking Offences Act 1986
1 Cites

1 Citers


 
IE Contractors v Lloyd's Bank CA [1990] 2 Lloyd's Rep. 496
1990
CA
Staughton LJ
Banking
Documents were issued by a bank and described as "performance bonds" for damages up to specified amounts. The difficulty arose from the unusual form and language of the documents. The wording of the operative clause: "We undertake to pay you, unconditionally, the said amount on demand, being your claim for damages brought about by the above-named principal." Held: This wording required the demand to contain some reference, express or implicit, to a claim for damages; but that this requirement was satisfied on the facts of the case. "There is a bias or presumption in favour of the construction which holds a performance bond to be conditioned upon documents rather than facts. But I would not hold the presumption to be irrebuttable, if the meaning is plain."
1 Citers


 
Agip (Africa) Ltd v Jackson [1990] 1 Ch 265; [1991] 3 WLR 11
1990
ChD
Millett J
Company, Banking
The reference to "any wrongful act or omission" in section 10 is not limited to torts or even to wrongs which were actionable at common law. "In paying or collecting money for a customer the bank acts only as his agent. It is otherwise, however, if the collecting bank uses the money to reduce or discharge the customer's overdraft. In doing so, it receives the money for its own benefit." Secrecy is a badge of fraud.
Partnership Act 1890 10
1 Citers



 
 China and South Sea Bank Limited v Tan Soon Gin; PC 1990 - [1990] 1 AC 536
 
National Westminster Bank v Powney [1991] Ch 339; [1990] 2 WLR 1084; [1990] 2 All ER 416; [1990] 134 SJ 28
1990
CA
Slade LJ
Banking, Limitation
The limitation period has nothing to do with the procedural machinery of enforcing a judgment when one was obtained.
1 Cites

1 Citers


 
Marley and 11 Others v Mutual Security Merchant Bank and Trust Co Ltd Co [1991] 3 All ER 198; [1990] UKPC 44
15 Oct 1990
PC
Lord Oliver of Aylmerton
Banking, Wills and Probate
BANKING - EQUITY, TRUSTS, PROBATE ADMINISTRATOR'S POWERS OF INVESTMENT Bank as sole administrator cannot invest estate funds in its own deposits in the absence of express sanction in the trust instrument.
Lord Oliver of Aylmerton said: "A trustee who is in genuine doubt about the propriety of any contemplated course of action in the exercise of his fiduciary duties and discretions is always entitled to seek proper professional advice and, if so advised, to protect his position by seeking the guidance of the court."
He also said: "The question whether the trustee has demonstrated that the contract submitted for approval is in the best interests of the beneficiaries reduces, in such a case as this, to whether the trustee can satisfy the court that it has taken all the necessary steps to obtain the best price that would be taken by a reasonably diligent professional trustee. The question may equally well be expressed as whether the trustee has shown that it has fully discharged its duty. That question may appear to be very similar to the question whether to enter into the contract without taking further steps and without seeking the directions of the court would justify an action by the beneficiaries for misconduct justifying the removal of the trustee. Nevertheless there is an essential distinction in that, in such an action, the beneficiaries would be required to assume the positive burden of demonstrating a breach of fiduciary duty. A failure to do so does not demonstrate the converse, namely that the transaction proposed, because not proved to be a breach of fiduciary duty, is therefore one which is in the interest of the beneficiaries" . . and "In the Court of Appeal, Rowe P regarded it as doubtful whether the respondent, having entered into the conditional contract, could even investigate an alternative offer, but regarded that offer in any event as unworthy of serious consideration because the respondent had no knowledge of the financial stability of the proposed purchaser and because, in postponing conclusion of the conditional contract whilst the matter was investigated, the respondent risked losing the 'bird in the hand'. . . What the Court of Appeal appears to have overlooked entirely was that, having regard to the course which it was proposed to take as regards the obviously unsatisfactory features of the conditional contract - that is to say the treatment of moneys falling due to the estate up to the closing date and in the interest-free postponement of a substantial part of the consideration - the 'bird in the hand' argument ceased to have any validity at all, for the effect of the order proposed and finally made was that the respondent had, in any event, to reject the conditional contract as it stood and to negotiate fresh terms with the purchaser if it proved willing to consider them."
Trustee Act 1956 66
1 Citers

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