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. The wife was liable.
Judges:
Mr Justice Charles The Hon Mr Justice Parker Lord Justice Potter
Citations:
[2004] EWCA Civ 64, Times 26-Feb-2004
Links:
Jurisdiction:
England and Wales
Citing:
Appeal from – Royal Bank of Scotland plc v Fielding ChD 2-May-2003
The claimant challenged being held liable for substantial borrowings made by her husband on their joint account. She originally agreed a limit of andpound;200,000, but the bank agreed to vary this with the husband to over 3 million pounds. She had . .
Cited – Barclays Bank v WJ Simms and Cooke (Southern) Ltd QBD 1979
The customer made out a cheque to pay his builder, but countermanded it. The bank paid the cheque when it was presented by mistake, and now sought repayment from the builder.
Held: The bank succeeded. The court discussed the extent of a . .
Cited – Royal Bank of Scotland v Etridge (No 2); Barclays Bank plc v Harris; Midland Bank plc v Wallace, etc HL 11-Oct-2001
Wives had charged the family homes to secure their husband’s business borrowings, and now resisted possession orders, claiming undue influence.
Held: Undue influence is an equitable protection created to undo the effect of excess influence of . .
Cited – Barclays Bank plc v Quincecare Ltd QBD 1992
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 . .
Cited – Catlin v Cyprus Finance Corporation (London) Ltd 1983
As between a banker and joint account holders, the banker has a duty of care to the account holders and each of them separately. . .
Cited – Redman v Allied Irish Bank 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 . .
Cited – Re Bishop, Dec’d 1965
An investment bought in the name of one from monies in the joint account will prima facie belong to the person in whose name the investment has been bought. . .
Cited – Lipkin Gorman v Karpnale Ltd CA 1989
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 . .
Cited – Gage v King 1960
The issue was as to the recoverability, in personal injury proceedings, of the wife’s medical expenses which had been paid for by the husband out of the joint account. After referring to the findings which a court may be driven to make in relation . .
Cited – Tai Hing Ltd v Liu Chong Hing Bank PC 1985
(Hong Kong) The relationship between banker and customer is principally a contractual one between debtor and creditor. As between the banker and his customer, the risk of loss through forgery of the customer’s signature falls on the banker unless . .
Cited – CIBC Mortgages Plc v Pitt and Another HL 21-Oct-1993
Mrs Pitt resisted an order for possession of the house saying that she had signed the mortgage only after misrepresentations by and the undue infuence of her husband who was acting as the bank’s agent.
Held: A bank was not put on enquiry as to . .
Cited by:
Appealed to – Royal Bank of Scotland plc v Fielding ChD 2-May-2003
The claimant challenged being held liable for substantial borrowings made by her husband on their joint account. She originally agreed a limit of andpound;200,000, but the bank agreed to vary this with the husband to over 3 million pounds. She had . .
Lists of cited by and citing cases may be incomplete.
Banking, Negligence
Updated: 09 June 2022; Ref: scu.193425