United Dominions Trust Ltd v Kirkwood: QBD 1965

For a company to be taken to carry on the business of banking money it must be able to show that it took money on current accounts.

Judges:

Mocatta J

Citations:

[1966] 1 QB 783, [1965] 3 WLR 817, [1965] 2 All ER 992

Jurisdiction:

England and Wales

Cited by:

Affirmed on appeal fromUnited Dominions Trust Ltd v Kirkwood CA 24-Feb-1966
The defendant was MD of a company which borrowed from the plaintiff. The company drew five bills as security, and the defendant endorsed them. When the company failed, the plaintiff gave notice of dishonour and sued the defendant as indorsee. The . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 20 December 2022; Ref: scu.260041

Halifax Mortgage Services Ltd (Formerly BNP Mortgages Ltd) v Stepsky and Another: CA 1 Dec 1995

The knowledge of a solicitor, acting for both the borrower and the lender, of the lay clients intentions as regards the future use of the loan, is not to be imputed to the lender, even though the solicitor acts for both parties, and is the lender’s agent.
Morritt LJ discussed section 199: ‘Counsel for the wife submitted that it did not apply as the knowledge came to the knowledge of the solicitors for the lender as such when they were instructed to act on behalf of the lender on 19 June 1990. In the case of the wife it was submitted that the solicitors were not instructed by her as ‘agents to know.’
I do not accept either of these submissions. In my view the section has to be applied in accordance with its terms to the facts of this case. There is no doubt that the information as to the true purpose of the remortgage loan imparted by the husband came to the knowledge of the solicitors on 12 June 1990 as the solicitors for the husband and wife alone for they were not instructed to act for the lenders until 19 June at the earliest. That knowledge once acquired remained with the solicitors and cannot be treated as coming to them again when they were instructed on behalf of the lenders. As counsel for the wife accepted, their knowledge cannot be treated as divided or disposed of and reacquired in that way. The conclusion seems to me to be inescapable, namely that knowledge of the relevant matters facts or things did not come to the solicitors as the solicitors for the lenders. Accordingly it did not come to them ‘as such.’ It was not disputed that the lender is a purchaser within the definition contained in section 205(1)(xxi) of the Law of Property Act 1925. Consequently section 199(1)(ii)…b) precludes the solicitors’ knowledge of the relevant matters or facts being imputed to the lender.’

Judges:

Morritt LJ

Citations:

Times 01-Dec-1995, Gazette 11-Jan-1996, [1996] Ch 207

Statutes:

Law of Property Act 1925 199

Jurisdiction:

England and Wales

Citing:

Appeal fromHalifax Mortgage Services Ltd (Formerly BNP Mortgages Ltd) v Stepsky and Another ChD 27-Jun-1995
The knowledge of a solicitor, acting for both the borrower and the lender, of the lay clients intentions as regards the future use of the loan, is not to be imputed to the lender, even though the solicitor acts for both parties, and is the lender’s . .

Cited by:

CitedScotlife Home Loans (No 2) Limited v Melinek and Melinek CA 9-Sep-1997
The second defendant sought leave to appeal against a possession order obtained by the claimant. The loan obtained had been misapplied by the first defendant, her husband. She had been advised in the transaction by his partner in their solicitors’ . .
CitedHardy and others v Fowle and Another ChD 26-Oct-2007
Mortgagees claimed possession of the land. The occupiers claimed a right of occupation under a lease. The mortgagees argued that the lease had been surrendered.
Held: The lease had been surrendered by a deed. The defects in notice alleged did . .
Lists of cited by and citing cases may be incomplete.

Agency, Legal Professions, Banking

Updated: 09 December 2022; Ref: scu.81151

Bank of Baroda v Rayarel and Others: CA 19 Jan 1995

A bank may assume that a solicitor advising a customer’s wife had acted properly. The solicitors acted for both the husband and the wife before they also gave their instructions to the solicitors.

Citations:

Times 19-Jan-1995, [1995] 2 FLR 376

Jurisdiction:

England and Wales

Cited by:

CitedRoyal 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 . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 09 December 2022; Ref: scu.78132

Burnett v Westminster Bank Ltd: ChD 1965

The plaintiff had a cheque account at the Borough Branch and drew a cheque on the cheque forms which had been provided. He crossed out the word `Borough’ and put in `Bromley’. He altered the address and he initialled the cheque. Later he decided to stop payment on the cheque, telephoning the Bromley Branch and informing them of this decision. The cheque had passed through the computer system which could not read the alterations made by the plaintiff. The cheque itself was forwarded to the Borough Branch at which the employees were unaware of the stop-payment instructions. At the end of the suspense period, the amount of the cheque was debited to the plaintiff’s account at the Borough Branch.
Held: The bank was unsuccessful in its contention that a new practice utilising the introduction of magnetic ink characters seeking to restrict cheques to the particular account for which they had been prepared, had been consensually agreed to by the customer. Notice of a change in condition oin cheque book covers was ineffective. A stop instruction from a bank’s customer applies to all accounts at the same branch if a specific account is not specified.
The bank is the debtor of the customer, whether the customer has a current or deposit account.

Judges:

Mocatta J

Citations:

[1966] 1 QB 742, [1965] 3 All ER 81

Jurisdiction:

England and Wales

Banking, Contract

Updated: 09 December 2022; Ref: scu.448095

Woodeson and Another v Credit Suisse (UK) Ltd: CA 17 May 2018

Appeal from a decision to grant the defendant bank summary judgment in respect of certain of the claimants’ claims. The result of the judgment is that the claimants can pursue a claim in deceit and contend that such claim is neither time-barred nor precluded by anti-set off provisions in their contract with the bank. No other claim is permissible. That is because it is arguable that the time for a deceit claim (as opposed to claims for negligent advice or breach of statutory duty) is extended pursuant to section 32 of the 1980 Act and that the anti-set off provisions may be unreasonable clauses within the relevant statutory provisions, on which the bank may not rely.

Judges:

Longmore, Leggatt LJJ

Citations:

[2018] EWCA Civ 1103

Links:

Bailii

Statutes:

Limitation Act 1980 32

Jurisdiction:

England and Wales

Cited by:

CitedBoyse (International) Ltd v Natwest Markets Plc and Another ChD 27-May-2020
Claim alleging misselling of interest rate hedging products. The court considered the defendants strike out application, and applications for leave to amend pleadings.
Held: it will normally be appropriate for summary judgment to be pursued on . .
Lists of cited by and citing cases may be incomplete.

Banking, Limitation, Contract, Torts – Other

Updated: 27 November 2022; Ref: scu.616341

Versorgungswerk Der Zahnarztekammer Schleswig-Holstein v ECB: ECFI 4 Jun 2015

CJ Judgment – Access to documents – Decision 2004/258/EC – Trade Agreement of 15 February 2012 between Greece and the ECB and national central banks of the Eurosystem – Annexes A and B – Partial refusal of public access -Interest – monetary policy of a Member State and Union – Financial position of the ECB and national central banks of the Eurosystem – Financial system stability in the EU

Judges:

G. Berardis, P

Citations:

T-376/13, [2015] EUECJ T-376/13, ECLI: EU: T: 2015: 361

Links:

Bailii

Jurisdiction:

European

Banking

Updated: 27 November 2022; Ref: scu.547709

Arab Bank Plc v John D Wood Commercial Ltd (In Liquidation) and others: CA 25 Nov 1999

Having once recovered damages against a valuer for a negligent survey, there was nothing to stop a lender recovering also under a policy of insurance under a mortgage indemnity guarantee, and so the lender was not required to give credit for monies already received. Such policies were taken out for the benefit of the lender not the borrower, and the insurance company being subrogated to the lender, no double recovery was involved.

Judges:

Mance LJ

Citations:

Times 25-Nov-1999, Gazette 08-Dec-1999, [2000] 1 WLR 857

Jurisdiction:

England and Wales

Cited by:

CitedGoldstein v Levy Gee ( A Firm) ChD 1-Jul-2003
There had been a dispute between shareholders, and the defendant was called upon to value the company. He issued a tender for valuers to value the properties. Complaint was made that the tender was negligent in its description of the basis for . .
CitedRoger Michael and others v Douglas Henry Miller and Another ChD 22-Mar-2004
Property had been sold by the respondents as mortgagees in possession. The claimants said the judge had failed to award the value of the property as found to be valued, and had not given a proper value to a crop of lavender.
Held: In . .
CitedLowick Rose Llp v Swynson Ltd and Another SC 11-Apr-2017
Losses arose from the misvaluation of a company before its purchase. The respondent had funded the purchase, relying upon a valuation by the predecessor of the appellant firm of accountants. Further advances had been made when the true situation was . .
CitedSS (Sri Lanka), Regina (on The Application of) v The Secretary of State for The Home Department CA 15-Jun-2018
The court was asked whether, in cases heard by the First-tier Tribunal (Immigration and Asylum Chamber) where the credibility of the appellant is in issue, there is a rule that a delay of more than three months between the hearing of oral evidence . .
Lists of cited by and citing cases may be incomplete.

Damages, Insurance, Banking, Equity

Updated: 24 November 2022; Ref: scu.77841

Sina Bank v Council: ECFI 18 Oct 2016

ECJ (Judgment) Common foreign and security policy – Restrictive measures taken against Iran with the aim of preventing nuclear proliferation – Freezing of funds – Actions for annulment – Period allowed for commencing proceedings – Amendment of pleadings – Admissibility – Obligation to state reasons – Rights of defence – Right to effective judicial protection – Manifest error of assessment – Adjustment of the effects in time of an annulment

Citations:

ECLI:EU:T:2016:619, [2016] EUECJ T-418/14

Links:

Bailii

Jurisdiction:

European

Citing:

See AlsoSina Bank v Council ECFI 11-Dec-2012
ECFI Common foreign and security policy – Restrictive measures taken against Iran with the aim of preventing nuclear proliferation – Freezing of funds – Actions for annulment – Duty to state reasons. . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 12 November 2022; Ref: scu.570147

Generale Bank Nederland Nv (Formerly Credit Lyonnais Bank Nederland Nv) v Export Credit Guarantee Department: CA 23 Jul 1997

The bank claimed that it had been defrauded, and that since an employee of the defendant had taken part in the fraud the defendant was had vicarious liability for his participation even though they knew nothing of it.
Held: Where A becomes liable to B as a joint tortfeasor with C in the tort of deceit practised by C on B on the basis that A and C have a common design to defraud B and A renders assistance to C pursuant to and in furtherance of the common design, does D, A’s employer, become vicariously liable to B, simply because the act of assistance, which is not itself the deceit, is in the course of A’s employment with D? An employer was not liable for the fraudulent acts of his employee during the employment but may be for purposes of fraud by third party.
Hobhouse LJ said: ‘Mere assistance, even knowing assistance, does not suffice to make the ‘secondary’ party liable as a joint tortfeasor with the primary party. What he does must go further. He must have conspired with the primary party or procured or induced his commission of the tort . . ; or he must have joined in the common design pursuant to which the tort was committed’

Judges:

Stuart-Smith LJ, Hobhouse LJ

Citations:

Times 04-Aug-1997, Gazette 10-Sep-1997, [1998] 1 Lloyd’s Rep 19, [1997] EWCA Civ 2165

Jurisdiction:

England and Wales

Citing:

Appeal fromGenerale Bank Nederland Nv (Formerly Credit Lyonnais Bank Nederland Nv) v Export Credit Guarantee Department 1996
The Export Credit Guarantee Department was not liable to the Bank for the loss which the Bank sustained due to the fraud of one of its customers in which an employee was involved. . .
CitedPLG Research Ltd and Another v Ardon International Ltd and Others ChD 25-Nov-1994
A patent infingement claim was met by the assertion that the material covered had been disclosed before the patent had been obtained. The court was asked as to the test of whether the information in a claim had been disclosed. Aldous J said: ‘Mr. . .

Cited by:

Appeal fromGenerale Bank Nederland Nv (Formerly Credit Lyonnais Bank Nederland Nv) v Export Credits Guarantee Department HL 19-Feb-1999
The wrong of the servant or agent for which the master or principal is liable is one committed in the case of a servant in the course of his employment, and in the case of an agent in the course of his authority. It is fundamental to the whole . .
CitedAbouRahmah and Another v Abacha and others QBD 28-Nov-2005
Claims were made as to an alleged fraud by some of the respondents. . .
CitedBritish Telecommunications Plc; Virgin Enterprises Ltd; J Sainsbury Plc; Marks and Spencer Plc and Ladbroke Group Plc v One In a Million Ltd and others CA 23-Jul-1998
Registration of a distinctive Internet domain name using registered trade marks and company names could be an infringement of a registered Trade Mark, and also passing off. It was proper to grant quia timet injunctions where necessary to stop . .
CitedTotal Network Sl v Customs and Excise Commissioners CA 31-Jan-2007
The defendants suspected a carousel VAT fraud. The defendants appealed a finding that there was a viable cause of action alleging a ‘conspiracy where the unlawful means alleged is a common law offence of cheating the public revenue’. The defendants . .
CitedTwentieth Century Fox Film Corporation and Another v Newzbin Ltd ChD 29-Mar-2010
The defendant operated a web-site providing a search facility of the Usenet news system which allowed its users to locate copies of films online for downloading. The claimant said this was an infringement of its copyrights.
Held: The defendant . .
CitedThe Rugby Football Union v Viagogo Ltd QBD 30-Mar-2011
The claimant objected to the resale through the defendant of tickets to matches held at the Twickenham Stadium. The tickets contained terms disallowing resales at prices over the face value. They sought orders for the disclosure of the names of the . .
CitedFish and Fish Ltd v Sea Shepherd UK and Another AdCt 25-Jun-2012
The claimant company was engaged in tuna fish culture off shore to Malta. The defendant ship was owned by a charity which campaigned against breaches of animal preservation conventions. Fish were being transporting live blue fin tuna in towed . .
CitedFish and Fish Ltd v Sea Shepherd Uk and Others CA 16-May-2013
The claimant company sought damages after their transport of live tuna was attacked by a protest group. They now appealed against a decision that the company owning the attacking ship was not liable as a joint tortfeasor.
Held: The appeal was . .
CitedSea Shepherd UK v Fish and Fish Ltd SC 4-Mar-2015
Accessory Liability in Tort
The court considered the concept of accessory liability in tort. Activists had caused damage to vessels of the respondent which was transporting live tuna in cages, and had caused considerable damage. The appellant company owned the ship from which . .
Lists of cited by and citing cases may be incomplete.

Employment, Vicarious Liability, Torts – Other, Banking

Updated: 09 November 2022; Ref: scu.80791

Heis and Others (Administrators of MF Global UK Ltd) v MF Global Inc: ChD 1 Nov 2012

An investment bank administrator who had been appointed under the 2011 Regulation was strictly analagous to a liquidator being appointed.

Judges:

David RichardsJ

Citations:

[2012] EWHC 3068 (Ch), [2012] WLR(D) 304, [2013] 1 WLR 903, [2013] 1 BCLC 552

Links:

Bailii, WLRD

Statutes:

Investment Bank Special Administration Regulations 2011

Jurisdiction:

England and Wales

Banking, Insolvency

Updated: 06 November 2022; Ref: scu.465530

Ropaigealach and Another v Cheltenham and Gloucester Building Society: CA 20 Mar 1997

The applicants sought leave to appeal against a possession order made for arrears under their mortgage. A possession order had been suspended on an arrangement as to payment. The way the society calculated its payments meant that the arrears continued to climb. After complaint the applicant stopped payments, and complained to the Ombudsman, whose decision led to the respondent writing off all but some arrears which it then sought to be paid in full by return.
Held: The order allowing payment by instalments continued in effect, and the society remained bound by it. Ward LJ said: ‘I do not know whether to characterise this application as a storm in a tea cup, a sledgehammer taken to crack a nut or a comedy of errors. ‘

Judges:

Ward LJ

Citations:

[1997] EWCA Civ 1296

Jurisdiction:

England and Wales

Cited by:

See AlsoRopaigealach v Barclays Bank plc CA 6-Jan-1999
The applicant’s property was charged to the defendant. At the time it was not occupied. The mortgage fell into arrears, and after serving notice at the property, the bank took posssession and sold the property at auction. The claimants said the bank . .
Lists of cited by and citing cases may be incomplete.

Litigation Practice, Banking

Updated: 06 November 2022; Ref: scu.141692

Aveng (Africa) Ltd v Gabonese Republic and Another: ComC 18 Jun 2012

Application by Citibank NA’s London branch to vary a freezing order made against the Government of the Gabon Republic at the behest of Aveng (Africa) Ltd, which was expressed to apply inter alia to any money and bank accounts held by Gabon with CBL.

Judges:

Field J

Citations:

[2012] EWHC 1687 (Comm)

Links:

Bailii

Banking

Updated: 03 November 2022; Ref: scu.461819

National Westminster Bank Plc v Kitch: CA 14 May 1996

An action to recover an overdraft debt which was secured by a mortgage is not itself a mortgage action. A claim based on a simple contract debt does not cease to be so simply because it is also secured by a charge.

Citations:

Gazette 15-May-1996, Times 14-May-1996, [1996] 1 WLR 1316

Statutes:

Rules of the Supreme Court Order 88 1

Jurisdiction:

England and Wales

Cited by:

CitedHopkinson and Others and Birmingham Mid-Shires Building Society v Tupper CA 30-Jan-1997
The plaintiffs appealed from an order striking out their claim for want of prosecution. The defendant’s property had been sold by the mortgagees, and the plaintiffs as assignees of their debt sought to recover the balance outstanding from the . .
Lists of cited by and citing cases may be incomplete.

Banking, Litigation Practice, Contract

Updated: 31 October 2022; Ref: scu.84218

Credit Lyonnais Bank Nederland NV v Burch: CA 1 Jul 1996

A Bank was to assume that undue influence existed where they knew that an employee was giving security for his employer’s debt to the bank. An unlimited guarantee given by an employee to his employer’s bank was set aside as unconscionable. The circumstances in which the doctrine of unconscionable bargains would apply were similar to those of undue influence. ‘Equity’s jurisdiction to relieve against (unconscionable bargains), although more rarely exercised in modern times is at least as venerable as its jurisdiction to relieve against those procured by undue influence.’ When attending his client to witness such a document, the solicitor must in any event advise her that she is under no obligation to enter into the transaction at all and, if she still wishes to do so, that she is not bound to accept the terms of any document which has been put before her.

Judges:

Nourse LJ

Citations:

Gazette 04-Sep-1996, Times 01-Jul-1996, [1997] 1 All ER 144

Jurisdiction:

England and Wales

Cited by:

CitedChagos Islanders v The Attorney General, Her Majesty’s British Indian Ocean Territory Commissioner QBD 9-Oct-2003
The Chagos Islands had been a British dependent territory since 1814. The British government repatriated the islanders in the 1960s, and the Ilois now sought damages for their wrongful displacement, misfeasance, deceit, negligence and to establish a . .
CitedPortman Building Society v Dusangh and Others CA 19-Apr-2000
The defendant sought to set aside an order for possession under a mortgage.
Held: Where a case was strong enough on its face in terms of conduct and terms, unconscionable conduct could be inferred if there was no explanation offered to . .
CitedRoyal 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 . .
Lists of cited by and citing cases may be incomplete.

Banking, Undue Influence

Updated: 31 October 2022; Ref: scu.79606

Banco Exterior Internacional v Mann and Others: CA 19 Dec 1994

A charge to secure a husband’s borrowings was enforceable where the wife’s signature had been taken before a solicitor who had explained it. Hobhouse LJ (dissenting) ‘It must be remembered that the starting point of this exercise is that the wife’s will is being unduly and improperly influenced by the will of her husband. The steps taken have to be directed to freeing her of that influence or, at the least, providing some counterbalance.’

Judges:

Hobhouse LJ

Citations:

Times 19-Dec-1994, [1995] 1 All ER 936

Jurisdiction:

England and Wales

Cited by:

CitedRoyal 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 . .
CitedGovernor and Company of Bank of Scotland v Bennett and Another ChD 1997
Mrs Bennett defended the bank’s claim for possession of the matrimonial home charged to the bank to secure her husband’s borrowings. She said that her signature, both to the guarantee and to the legal charge, had been procured by her husband’s undue . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 27 October 2022; Ref: scu.78127

In Re New Bullas Trading Ltd: CA 12 Jan 1994

A company debenture, which purported to create a fixed charge on book debts, and a second floating charge over the proceeds when paid, was valid and effective to create a fixed charge. The chargee was not a bank, and therefore no facility could be provided for payment of book debts. However ‘Just as it is open to contracting parties to provide for a fixed charge on future book debts, so it is open to them to provide that they shall be subject to a fixed charge while they are uncollected and a floating charge on realisation. No authority to the contrary has been cited and, the principle being as spacious as it has been expressed to be, no objection is on that account sustainable. For these reasons, I would accept [Counsel’s] second main submission and hold that the charge over book debts of the company, as created by the debenture, was, unless and until their proceeds were paid into the specified account, a valid fixed charge.’

Judges:

Nourse LJ, Russell LJ and Scott Baker J

Citations:

Times 12-Jan-1994, Ind Summary 17-Jan-1994, [1994] 1 BCLC 449

Jurisdiction:

England and Wales

Citing:

Appeal fromRe: New Bullas Trading Ltd ChD 5-Apr-1993
A fixed charge in a debenture without restrictions on dealing with monies received must be a floating charge. . .
AppliedSiebe Gorman and Co Ltd v Barclays Bank Ltd ChD 1979
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 . .

Cited by:

ReversedAgnew 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
(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 . .
Appealed toRe: New Bullas Trading Ltd ChD 5-Apr-1993
A fixed charge in a debenture without restrictions on dealing with monies received must be a floating charge. . .
CitedNational Westminster Bank Plc v Spectrum Plus Ltd and others ChD 15-Jan-2004
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 . .
CitedNational Westminster Bank Plc v Spectrum Plus Ltd; In re Spectrum Plus CA 26-May-2004
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 . .
CitedNational Westminster Bank plc v Spectrum Plus Limited and others HL 30-Jun-2005
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 . .
Lists of cited by and citing cases may be incomplete.

Company, Banking, Insolvency

Updated: 26 October 2022; Ref: scu.82072

Continental Bank Na v Aeakos Compania Naviera Sa and Others: CA 26 Nov 1993

The Bank was entitled to an injunction in the UK, by virtue of the jurisdiction given in their agreement, even though it was not the UK court which was first seised of the matter. Steyn LJ said: ‘. . a claim for damages for breach of contract would be a relatively ineffective remedy. An injunction is the only effective remedy for the appellants’ breach of contract. If the injunction is set aside, the appellants will persist in their breach of contract, and the bank’s legal rights as enshrined in the jurisdiction agreements will prove to be valueless. Given the total absence of special countervailing factors, this is the paradigm case for the grant of an injunction . .’

Judges:

Steyn LJ

Citations:

Ind Summary 13-Dec-1993, Times 26-Nov-1993, [1994] 1 WLR 588

Statutes:

Brussels Convention 1968 Art 17

Jurisdiction:

England and Wales

Cited by:

CitedNational Westminster Bank v Utrecht-America Finance Company CA 10-May-2001
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 . .
CitedOT Africa Line Ltd v Magic Sportswear Corporation and others CA 13-Jun-2005
The parties to a contract had agreed that the proper law for the contract was England. One party commenced proceedings in Canada, and the courts of Canada had accepted jurisdiction as the most appropriate and convenient forum to resolve the dispute. . .
Lists of cited by and citing cases may be incomplete.

Litigation Practice, Banking, Jurisdiction

Updated: 26 October 2022; Ref: scu.79470

Depositors’ Protection Board v Dalia and Another: CA 11 May 1993

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 fromDepositors Protection Board v Dalia and Another ChD 18-Nov-1992
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. . .

Cited by:

Appeal fromDepositors’ Protection Board v Dalia HL 20-May-1994
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 . .
Lists of cited by and citing cases may be incomplete.

Banking, Financial Services

Updated: 26 October 2022; Ref: scu.79921

Global Asset Capital, Inc and Another v Aabar Block Sarl and Another: ComC 18 Feb 2016

Judges:

Walker J

Citations:

[2016] EWHC 298 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Appeal fromGlobal Asset Capital, Inc and Another v Aabar Block Sarl and Others CA 1-Feb-2017
Appeal against refusal of summary judgment. The court set out the applicable principles concerning strike out and summary judgment: ‘(1) The court must consider whether the case of the respondent to the application has a realistic as opposed to . .
Lists of cited by and citing cases may be incomplete.

Banking, Torts – Other

Updated: 26 October 2022; Ref: scu.560179

Locabail (UK) Ltd and Another v Waldorf Investment Corporation and Others: ChD 31 Mar 1999

A consent to a mortgage on a property, allowed a bank to substitute a second charge for the first, without the owners consent, but this was limited to the extent and value of the first charge. There was no argument to limit the effect of the second charge to an equitable charge.

Citations:

Times 31-Mar-1999, Gazette 19-May-1999

Jurisdiction:

England and Wales

Citing:

AppliedEquity and Law Home Loans Ltd v Prestidge CA 1992
A house was bought in the name of one partner in an unmarried couple. It was subject to a mortgage, and the non-owner contributed a capital sum. The landowner later remortgaged for a larger sum, but without the partner’s consent. The landowner then . .
See AlsoLocabail (UK) Ltd and Another v Waldorf Investment Corporation and Others (No 4) ChD 13-Jun-2000
An application to the European Court of Human Rights was not an appeal. Where it was clear that any decision there would not affect the issues between the parties, there was no reason to suspend enforcement of the order which had given rise to the . .

Cited by:

See AlsoLocabail (UK) Ltd and Another v Waldorf Investment Corporation and Others (No 4) ChD 13-Jun-2000
An application to the European Court of Human Rights was not an appeal. Where it was clear that any decision there would not affect the issues between the parties, there was no reason to suspend enforcement of the order which had given rise to the . .
Lists of cited by and citing cases may be incomplete.

Banking, Land

Updated: 25 October 2022; Ref: scu.83126

Carse v Coppen: IHCS 8 Dec 1950

The court considered the inability to create a floating charge over a company’s assets in Scots law. It was conceded that a company registered in Scotland could not create a valid and effectual floating charge over its assets in Scotland, but it was contended that it had done so over its assets in England. This argument was rejected. Lord President Cooper said that a floating charge was utterly repugnant to the principles of Scots law, which did not recognise it as creating a security at all. The reforms in the law which had been effected because of the many criticisms that had been directed against the injustices capable of being inflicted on the trade creditors by the use of floating charges had been expressly confined to companies registered in England. It was unthinkable that this could have been done except upon the view that companies registered in Scotland and subject to Scots law could not create floating charges.

Judges:

Lord President Cooper

Citations:

1951 SC 233, [1950] ScotCS CSIH – 5

Links:

Bailii

Jurisdiction:

Scotland

Cited by:

CitedNational Westminster Bank plc v Spectrum Plus Limited and others HL 30-Jun-2005
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 . .
CitedSharp and Others v Woolwich Building Society HL 6-Feb-1997
The House was asked: what is meant by the word property in a floating charge and in section 53(7) of the 1986 Act which provides for the effect of the appointment of a receiver by the holder of such a charge in the following terms: ‘(7) On the . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 11 September 2022; Ref: scu.228297

GMAC Commercial Credit Development Ltd v Sandhu and Another: ComC 31 Mar 2004

Claims under separate Deeds of Guarantee and Indemnity

Judges:

Richard Siberry QC

Citations:

[2004] EWHC 716 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoGMAC Commercial Credit Development Ltd v Sandhu and Another CA 10-Jul-2001
Claims under deeds of guarantee and indemnity to support debt factoring arrangements. . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 06 September 2022; Ref: scu.432823

Essentially Different Ltd v Bank of Scotland Plc: ComC 10 Mar 2011

The claimant sought damages from its bankers saying that having agreed a loan, it had sought to add new conditions before paying the second tranche. The defendant said that there had been misrepresentations.

Judges:

Burton J

Citations:

[2011] EWHC 475 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Banking, Contract

Updated: 03 September 2022; Ref: scu.430499

Marley and 11 Others v Mutual Security Merchant Bank and Trust Co Ltd Co: PC 15 Oct 1990

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.’

Judges:

Lord Oliver of Aylmerton

Citations:

[1991] 3 All ER 198, [1990] UKPC 44

Links:

Bailii

Statutes:

Trustee Act 1956 66

Jurisdiction:

England and Wales

Cited by:

CitedJohn Weth and Others v Her Majesty’s Attorney General and Others CA 23-Feb-2001
A charitable trust had been established. Protracted disputes had taken place, and the burden of the costs required to be apportioned. The financial practices of the charity had been informal leading to confusion, and dissension. An intervention by . .
Cited3 Individual Present Professional Trustees of 2 Trusts v an Infant Prospective Beneficiary of One Trust and others ChD 25-Jul-2007
The parties challenged under the 198 Act the right of trustees to seek a Beddoe order protecting themselves against an award of costs. . .
See AlsoMarley and Others v Mutual Security Merchant Bank and Trust Co Ltd Co PC 2-Feb-1995
(Jamaica) . .
Lists of cited by and citing cases may be incomplete.

Banking, Wills and Probate

Updated: 02 September 2022; Ref: scu.429845

Bournemouth and Boscombe Athletic Football Club Ltd v Lloyds TSB Bank Plc: CA 28 Jun 2004

Judges:

Thorpe, Jonathan Parker LLJ

Citations:

[2004] EWCA Civ 935

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoBournemouth and Boscombe Athletic Football Club Ltd v Lloyds TSB Bank Plc CA 10-Dec-2003
Appeal from refusal of extension of time to serve particulars of claim and strike out. . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 31 August 2022; Ref: scu.427736

Louis Castrique v Guiseppe Buttigieg: PC 27 Nov 1855

The liability of an indorser to his immediate indorsee arises out of a contract between them, and this contract in no instance consists exclusively in the writing popularly called an indorsement, vhich is necessary to the existence of the contract in question but arises out of the written indorsement itself ;

Citations:

[1855] UKPC 26

Links:

Bailii

Jurisdiction:

England and Wales

Banking, Contract

Updated: 24 August 2022; Ref: scu.424613

Global Financial Recoveries Ltd v Jones: ChD 13 Jan 2000

The defendant entered into a mortgage loan. The property was repossessed and he faced an action for recovery of the shortfall. It was argued that the claim was out of time after six years. The court held that the debt remained a specialty debt and the twelve year period applied, but nevertheless, the actual claimant claimed under an assignment which had assigned only the personal element of the debt, but not the benefit of the covenant within the mortgage deed. An assignment of the debt alone operated to assign that debt, and not the right given under the mortgage, and so a claim under the assignment was limited as under contract.

Citations:

Gazette 13-Jan-2000, Times 23-Feb-2000, [2000] BPIR 1029

Statutes:

Limitation Act 1980

Jurisdiction:

England and Wales

Cited by:

CitedWest Bromwich Building Society v Wilkinson HL 30-Jun-2005
The Society had taken possession of a property in 1989. It located the defendants many years later and sought payment of the excess after deduction of the proceeds of sale, and for interest. The borrowers claimed the debt was expired by limitation . .
Lists of cited by and citing cases may be incomplete.

Limitation, Land, Banking, Limitation

Updated: 24 August 2022; Ref: scu.80875

Kotonou v National Westminster Bank Plc: ChD 5 Jul 2010

Citations:

[2010] EWHC 1659 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoNational Westminster Bank Plc v Kotonou and Another ChD 19-Jun-2006
. .
See AlsoNational Westminster Bank Plc v Kotonou CA 26-Feb-2007
. .
See AlsoNational Westminster Bank v Kotonou ChD 11-Dec-2009
. .

Cited by:

Appeal fromKotonou v National Westminster Bank Plc CA 30-Oct-2015
Appeal against summary dismissal of claim against the bank based on Henderson v Henderson.
Gloster LJ, commented on Buxton LJ’s observations in the Taylor Walton case: ‘Thus, in my view, what is required in the present case is ‘an intense focus . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 21 August 2022; Ref: scu.420391

Helmsley Acceptances Ltd v Hampton: CA 11 Mar 2010

The claimant lender sought damages from an allegedly negligent valuation by the defendant. It had syndicated its loan, and the defendant now argued that it could only claim for that part of the loan for which it retained ownership.
Held: The claimants had an arguable claim which should be allowed to go to trial. But it was also arguable that, even if the investors now joined fail for any reason to recover damages in respect of their loss, the loss can nevertheless be recoverable, either because Helmsley constituted themselves trustees of the securities and, by implication, the rights associated with the securities, or because Helmsley can rely on the so-called Albazero exception.

Judges:

Longmore, Smith, Briggs LJJ

Citations:

[2010] EWCA Civ 356

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

CitedLinden Gardens Trust Ltd v Lenesta Sludge Disposals Ltd and Others; St. Martins Property Corporation Ltd v Sir Robert McAlpine HL 8-Dec-1993
A contractor had done defective work in breach of a building contract with the developer but the loss was suffered by a third party who had by then purchased the development. The developer recovered the loss suffered by the purchaser.
Held: . .
CitedTechnotrade Ltd v Larkstore Ltd CA 27-Jul-2006
A claim was made for damages arising from building operations. Question as to legal effect of assignment of cause of action. . .
CitedAlbacruz (Cargo Owners) v Albazero ‘The Albazero’ HL 1977
The House was asked as to the extent to which a consignor can claim damages against a carrier in circumstances where the consignor did not retain either property or risk. To the general principle that a person cannot recover substantial damages for . .
CitedBanque Bruxelles Lambert Sa v Eagle Star Insurance Co Ltd and Others CA 24-Feb-1995
The plaintiffs were mortgagees. The defendants were valuers. The defendants negligently over-valued properties and the plaintiffs then accepted mortgages of the properties. Later the property market collapsed and the various borrowers defaulted and . .
Lists of cited by and citing cases may be incomplete.

Damages, Banking

Updated: 17 August 2022; Ref: scu.407767

Re Kaupthing Singer and Friedlander Ltd: ChD 19 Feb 2010

Judges:

Blair J

Citations:

[2010] EWHC 316 (Ch)

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Citing:

BindingIn re SSSL Realisations (2002) Ltd and Another; Squires and others v AIG Europe (UK) Ltd and Another CA 18-Jan-2006
A creditor claiming an equity in a debt but who himself owed money to the debtor, could not pursue his claim without first contributing the sum due. A person could not take an aliquot share out of a fund without first contributing what he owed to . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Banking

Updated: 14 August 2022; Ref: scu.401666

Tew and Others v Bos (Shared Appreciation Mortgages) No 1 Plc and Others: ChD 22 Jan 2010

Litigation involving shared appreciation mortgages, mortgages which were offered for a period in 1997 and 1998 by certain lenders (Bank of Scotland (‘BoS’) and Barclays Bank) which are unconventional in relation to their interest payments and redemption terms. For present purposes they can be grouped into two categories which share a common feature. The common feature is that the loans are not repayable at any fixed time. They are repayable in the event of a sale, or the death of the mortgagor. On redemption the mortgagor pays the principal outstanding and a specified percentage of any increase in value of the property over the purchase costs. That percentage is a multiple of the loan to value ratio. The multiple varies depending on the category into which the mortgage falls. One category has no interest charge. In those cases the multiple is usually 3 times loan to value ratio. The other category has a fixed interest charge, and in this case the multiple is 1.

Judges:

Mann J

Citations:

[2010] EWHC 203 (Ch)

Links:

Bailii

Jurisdiction:

England and Wales

Banking

Updated: 14 August 2022; Ref: scu.396743

Jack and Another (London Scottish Finance Ltd) v Craig and Others: ChD 17 Dec 2013

Application by the joint administrators of LSF for directions arising out of loan agreements made or acquired by LSF before the administration began, under which secured loans were made to consumers but which were unenforceable because they contravened provisions of the Consumer Credit Act 1974.
Held: The phrase ‘realisation of the security’ in section 106, is to be interpreted conventionally to achieve the policy objective (section 113) that the security provided under the regulated agreement could not be enforced so as to benefit the creditor to any greater extent than would be the case if the security were not provided. In a secured loan to which section 106(d) applied, the provisions did not catch all sums paid by the debtor in discharge of the loan.

Judges:

Sir Terence Etherton Ch

Citations:

[2013] EWHC 4047 (Ch), [2013] WLR(D) 498, [2014] Bus LR 424, [2013] CTLC 231

Links:

Bailii, WLRD

Statutes:

Insolvency Act 1986, Consumer Credit Act 1974 106(d)

Jurisdiction:

England and Wales

Insolvency, Consumer, Banking

Updated: 14 August 2022; Ref: scu.519223

Royal Bank of Scotland Plc v Carlyle: SCS 13 Jan 2010

The bank sought repayment of a loan to the defender, who replied saying that the Bank had promised additional funding without which he suffered losses.

Judges:

Lord Glennie

Citations:

[2010] ScotCS CSOH – 3

Links:

Bailii

Jurisdiction:

Scotland

Cited by:

See AlsoRoyal Bank of Scotland Plc v Carlyle SCS 6-Aug-2010
(Outer House) . .
See AlsoRoyal Bank of Scotland Plc v Carlyle SCS 12-Sep-2013
. .
At Outer HouseCarlyle (Scotland) v Royal Bank of Scotland Plc SC 11-Mar-2015
Assessing Whether 1st Judge was Plainly Wrong
The Court was asked whether, on an objective assessment of a what a developer and the bank had said to each other, the bank intended to enter into a legally binding promise to advance sums in the future to fund not only the developers purchase of . .
Lists of cited by and citing cases may be incomplete.

Contract, Banking

Updated: 13 August 2022; Ref: scu.393046

Deutsche Bank Ag v Sebastian Holdings Inc: ComC 1 Dec 2009

Citations:

[2009] EWHC 3069 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoDeutsche Bank Ag v Sebastian Holdings Inc ComC 14-Aug-2009
. .

Cited by:

See AlsoDeutsche Bank Ag v Sebastian Holdings Inc ComC 28-Apr-2016
. .
See AlsoDeutsche Bank Ag v Sebastian Holdings Inc ComC 16-Dec-2016
. .
See AlsoDeutsche Bank Ag v Sebastian Holdings Inc ComC 13-Dec-2017
. .
Lists of cited by and citing cases may be incomplete.

Company, Banking

Updated: 07 August 2022; Ref: scu.381695

Bank of Credit and Commerce International v Malik and Others: ChD 13 Mar 1995

A bank was free to set its own base rate as it wished despite its liquidation.

Citations:

Ind Summary 13-Mar-1995

Jurisdiction:

England and Wales

Cited by:

Appeal fromBank of Credit and Commerce International SA (In Liquidation) v Malik and Malik CA 5-Dec-1996
A bank in liquidation remained free to set its own base rate. . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 06 August 2022; Ref: scu.78303

Bank of Credit and Commerce International Sa (In Liquidation) (No 8): CA 2 Oct 1996

Not all debts which were eligible for proof in bankruptcy were also eligible for a set off.
Rose Ljexplained the doctrine of equitable marshallling, saying: ‘The doctrine of marshalling applies where there are two creditors of the same debtor, each owed a different debt, one creditor (A) having two or more securities for the debt due to him and the other (B) having only one. B has the right to have the two securities marshalled so that both he and A are paid so far as possible. Thus if a debtor has two estates (Blackacre and Whiteacre) and mortgages both to A and afterwards mortgages Whiteacre only to B, B can have the two mortgages marshalled so that Blackacre can be made available to him if A chooses to enforce his security against Whiteacre. For the doctrine to apply there must be two debts owed by the same debtor to two different creditors.’
. . and ‘[Marshalling] is never allowed to delay or defeat the creditor with several securities in the collection of his debt and the enforcement of his securities. He is allowed to realise his securities as he pleases’.

Judges:

Rose LJ

Citations:

Gazette 02-Oct-1996, [1996] Ch 245, [1996] 2 BCLC 254, [1996] 2 WLR 631, [1996] 2 All ER 121

Statutes:

Insolvency Rules 1986 4.90

Jurisdiction:

England and Wales

Cited by:

CitedSzepietowski v The National Crime Agency SC 23-Oct-2013
S owned several propertie in charge to the bank, but the Agency said that each had been acquired with the proceeds of criminal activity. The parties had settled the claim by the grant of a second charge in favour of the Agency. However when that . .
CitedLB Holdings Intermediate 2 Ltd, The Joint Administrators of v Lehman Brothers International (Europe), The Joint Administrators of and Others SC 17-May-2017
In the course of the insolvent administration of the bank, substantial additional sums were received. Parties appealed against some orders made on the application to court for directions as to what was to be done with the surplus.
Held: The . .
Lists of cited by and citing cases may be incomplete.

Banking, Insolvency, Equity

Updated: 06 August 2022; Ref: scu.78144

HSBC Bank Plc v Liberty Mutual Insurance Company (Uk) Ltd: ChD 11 Jun 2001

Where the draftsman of a contract appeared to have misused a word the court could depart from the dictionary meanings even if there was no ambiguity. This must first become apparent from the surrounding circumstances before the court could accept that it was to be driven to construe the contract in this way.

Citations:

Times 11-Jun-2001

Jurisdiction:

England and Wales

Insurance, Banking, Contract

Updated: 06 August 2022; Ref: scu.81509

Halifax Mortgage Services Ltd (Formerly BNP Mortgages Ltd) v Stepsky and Another: ChD 27 Jun 1995

The knowledge of a solicitor, acting for both the borrower and the lender, of the lay clients intentions as regards the future use of the loan, is not to be imputed to the lender, even though the solicitor acts for both parties, and is the lender’s agent.

Judges:

Edward Nugee QC

Citations:

Ind Summary 24-Jul-1995, Times 27-Jun-1995, Gazette 13-Jul-1995, [1996] Ch 1

Jurisdiction:

England and Wales

Cited by:

Appeal fromHalifax Mortgage Services Ltd (Formerly BNP Mortgages Ltd) v Stepsky and Another CA 1-Dec-1995
The knowledge of a solicitor, acting for both the borrower and the lender, of the lay clients intentions as regards the future use of the loan, is not to be imputed to the lender, even though the solicitor acts for both parties, and is the lender’s . .
Lists of cited by and citing cases may be incomplete.

Land, Legal Professions, Banking

Updated: 06 August 2022; Ref: scu.81153

Hollicourt (Contracts) Ltd (In Liquidation) v Bank of Ireland: ChD 17 Dec 1999

A company’s account was in credit at all times, but was, unknown to the bank, in winding up proceedings. The bank continued to honour cheques, and was found to have been making dispositions of the company’s assets under the section. Accordingly the payments were void and ineffective from the date of the commencement of the winding up.

Citations:

Times 30-Nov-1999, Gazette 17-Dec-1999

Statutes:

Insolvency Act 1986 127

Jurisdiction:

England and Wales

Citing:

Appealed toBank of Ireland v Hollicourt (Contracts) Limited CA 20-Oct-2000
A bank continued to pay on cheques presented to it against the company’s bank account even after the presentation of a petition for bankruptcy. The liquidator sought recovery of the amounts paid from the bank as well as the payees. It was held that . .

Cited by:

Appeal fromBank of Ireland v Hollicourt (Contracts) Limited CA 20-Oct-2000
A bank continued to pay on cheques presented to it against the company’s bank account even after the presentation of a petition for bankruptcy. The liquidator sought recovery of the amounts paid from the bank as well as the payees. It was held that . .
Lists of cited by and citing cases may be incomplete.

Company, Insolvency, Banking

Updated: 06 August 2022; Ref: scu.81446

Hampton v Minns: ChD 17 May 2001

The parties were each sureties for a debt to their bank from their company. The bank recovered the company’s debt from one surety, who in turn sought a contribution of half from the other. The respondent asserted that the claim was statute barred, because in this case it was a claim under a guarantee for which the limitation period was two years. The claimant succeeded, on the basis that the claim was in debt, because of the particular agreement. On its true construction the agreement between the parties created a debt, and the right to a contribution did not arise under the 1978 Act.

Citations:

Gazette 17-May-2001

Statutes:

Civil Liability (Contributions) Act 1978 1, Limitation Act 1980 10

Jurisdiction:

England and Wales

Limitation, Banking

Updated: 05 August 2022; Ref: scu.81213

In re Kaupthing Singer and Friedlander Ltd: ChD 2 Oct 2009

Judges:

Norris J

Citations:

[2009] EWHC 2308 (Ch)

Links:

Bailii

Statutes:

Insolvency Act 1986

Jurisdiction:

England and Wales

Cited by:

Appeal FromIn re Kaupthing Singer and Friedlander Ltd CA 11-May-2010
The court was asked as to the set-off, in a company administration, of future debts owed by the company to its creditors and by those creditors to the company, and whether the effect of those provisions was that, after the future debts were . .
See AlsoIn re Kaupthing Singer and Friedlander Ltd SC 19-Oct-2011
The bank had been put into administrative receivership, and the court was now asked as to how distributions were to be made, and in particular as to the application of the equitable rule in Cherry v Boultbee in the rule against double proof as it . .
Lists of cited by and citing cases may be incomplete.

Insolvency, Banking

Updated: 04 August 2022; Ref: scu.375620

Kommune and Another v DEPFA Acs Bank: ComC 4 Sep 2009

Local authorities in Denmark sought to recover sums paid to the defendant banks for swap trading, saying that the payments had been outwith their powers.

Judges:

Tomlinson J

Citations:

[2009] EWHC 2227 (Comm)

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

CitedWestdeutsche Landesbank Girozentrale v Islington London Borough Council HL 22-May-1996
Simple interest only on rate swap damages
The bank had paid money to the local authority under a contract which turned out to be ultra vires and void. The question was whether, in addition to ordering the repayment of the money to the bank on unjust enrichment principles, the court could . .
CitedGuinness Mahon and Co Ltd v Kensington and Chelsea London Borough Council CA 2-Mar-1998
Where a local authority entered into a loan agreement outside its powers, the agreement was void ab initio, not merely voidable, and all moneys paid could be reclaimed. . .
CitedKleinwort Benson Ltd v Lincoln City Council etc HL 29-Jul-1998
Right of Recovery of Money Paid under Mistake
Kleinwort Benson had made payments to a local authority under swap agreements which were thought to be legally enforceable when made. Subsequently, a decision of the House of Lords, (Hazell v. Hammersmith and Fulham) established that such swap . .
CitedDeutsche Morgan Grenfell Group Plc v Inland Revenue and Another HL 25-Oct-2006
The tax payer had overpaid Advance Corporation Tax under an error of law. It sought repayment. The revenue contended that the claim was time barred.
Held: The claim was in restitution, and the limitation period began to run from the date when . .
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 . .
CitedNIRU Battery Manufacturing Company and Another v Milestone Trading Ltd and others ComC 8-May-2003
There was a contract for the sale of lead ingots. The sale was supported by letters of credit but inaccurate certificates were issued to release payment. The parties sought now to amend the contributions in the light of the Royal Brompton Hospital . .
CitedGoss and others v Laurence George Chilcott As Liquidator of Central Acceptance Limited (In Liquidation) PC 23-May-1996
(New Zealand) Mr and Mrs Goss, had been granted a loan by the claimant finance company under a mortgage instrument that had been avoided by the claimant because it had been fraudulently altered by Mr Haddon, an employee of the claimant, without the . .

Cited by:

Appeal FromHaugesund Kommune and Another v Depfa Acs Bank CA 27-May-2010
. .
Lists of cited by and citing cases may be incomplete.

Financial Services, Local Government, Banking

Updated: 04 August 2022; Ref: scu.374385

Barclays Bank Plc v O’Brien and Another: CA 22 May 1992

A bank leaving a husband to explain a proposed charge over the matrimonial home to his wife to secure his business debts, could not enforce that charge against her. There was a presumption of undue influence in the husband which made the charge defective.

Citations:

Gazette 15-Jul-1992, [1992] 4 All ER 983, [1993] QB 109

Links:

Bailii

Jurisdiction:

England and Wales

Cited by:

Appeal fromBarclays Bank Plc v O’Brien and Another HL 21-Oct-1993
The wife joined in a charge on the family home to secure her husband’s business borrowings. The husband was found to have misrepresented to her the effect of the deed, and the bank had been aware that she might be reluctant to sign the deed.
CitedCIBC 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 . .
Lists of cited by and citing cases may be incomplete.

Banking, Undue Influence

Updated: 31 July 2022; Ref: scu.78212

In Re ASRS Establishment Ltd (In Administrative Receivership and Liquidation): ChD 17 Nov 1999

Although the parties should be free to make the agreement they wanted to, and the court should listen, that would not mean that assets which were incapable of being made subject to a fixed charge could be made so by the joint intention of the parties.

Citations:

Times 17-Nov-1999

Jurisdiction:

England and Wales

Cited by:

CitedNational Westminster Bank Plc v Spectrum Plus Ltd; In re Spectrum Plus CA 26-May-2004
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 . .
Lists of cited by and citing cases may be incomplete.

Banking, Insolvency

Updated: 24 July 2022; Ref: scu.81699

Dexter Ltd (In Administrative Receivership) v Harley: ChD 2 Apr 2001

Money was transferred wrongfully out of the company, and then on again into the hands of the respondent. She received the money, and knew of its fraudulent provenance, but all her acts were committed outside the jurisdiction.
Held: It was not sufficient that the original act in breach of trust occurred within the jurisdiction, the claimant had to show that some act of the defendant had occurred here, if she was to be sued here.

Citations:

Times 02-Apr-2001

Statutes:

Convention on Jurisdiction and the Enforcement of Judgments in Civil and Commercial Matters (1968) (Cmnd 7395)

Jurisdiction:

England and Wales

Trusts, Banking, Jurisdiction

Updated: 19 July 2022; Ref: scu.79951

Kadi v Council and Commission: ECJ 3 Sep 2008

(Common foreign and security policy) Grand Chamber – Common foreign and security policy (CFSP) Restrictive measures taken against persons and entities associated with Usama bin Laden, the Al-Qaeda network and the Taliban United Nations Security Council Resolutions adopted under Chapter VII of the Charter of the United Nations Implementation in the Community Common Position 2002/402/CFSP Regulation (EC) No 881/2002 ‘ Measures against persons and entities included in a list drawn up by a body of the United Nations Freezing of funds and economic resources Committee of the Security Council created by paragraph 6 of Resolution 1267 (1999) of the Security Council (Sanctions Committee) Inclusion of those persons and entities in Annex I to Regulation (EC) No 881/2002 Actions for annulment Competence of the Community Joint legal basis of Articles 60 EC, 301 EC and 308 EC Fundamental rights Right to respect for property, right to be heard and right to effective judicial review

Citations:

[2009] 1 AC 1225, [2008] EUECJ C-402/05, [2009] 3 WLR 872

Links:

Bailii

Jurisdiction:

European

Citing:

See AlsoKadi v Council and Commission ECFI 21-Sep-2005
ECJ (Common Foreign and Security Policy) Common foreign and security policy – Restrictive measures taken against persons and entities associated with Usama bin Laden, the Al-Qaeda network and the Taliban – . .
See AlsoKadi v Council and Commission (Common Foreign and Security Policy) ECJ 16-Jan-2008
ECJ Common foreign and security policy (CFSP) – Restrictive measures taken against persons and entities associated with Usama bin Laden, the Al-Qaeda network and the Taliban – United Nations Security Council . .

Cited by:

CitedYoussef v Secretary of State for Foreign and Commonwealth Affairs SC 27-Jan-2016
An Egyptian national, had lived here since 1994. He challenged a decision by the Secretary of State,as a member of the committee of the United Nations Security Council, known as the Resolution 1267 Committee or Sanctions Committee. The committee . .
CitedWightman and Others v Secretary of State for Exiting the European Union ECJ 10-Dec-2018
Art 50 Notice withrawable unilaterally
Reference for a preliminary ruling – Article 50 TEU – Notification by a Member State of its intention to withdraw from the European Union – Consequences of the notification – Right of unilateral revocation of the notification – Conditions
The . .
Lists of cited by and citing cases may be incomplete.

Crime, International, Banking

Updated: 17 July 2022; Ref: scu.605178

National Westminster Bank Plc v Kotonou: CA 26 Feb 2007

Citations:

[2007] EWCA Civ 223

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoNational Westminster Bank Plc v Kotonou and Another ChD 19-Jun-2006
. .

Cited by:

See AlsoNational Westminster Bank v Kotonou ChD 11-Dec-2009
. .
See AlsoKotonou v National Westminster Bank Plc ChD 5-Jul-2010
. .
See AlsoKotonou v National Westminster Bank Plc CA 30-Oct-2015
Appeal against summary dismissal of claim against the bank based on Henderson v Henderson.
Gloster LJ, commented on Buxton LJ’s observations in the Taylor Walton case: ‘Thus, in my view, what is required in the present case is ‘an intense focus . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 10 July 2022; Ref: scu.250267

Italy v Commission C-66/02: ECJ 15 Dec 2005

ECJ (State Aid) Actions for annulment – State aid – Decision 2002/581 / EC – Tax benefits granted to banks – Reason for decision – State-aid qualification – Conditions – Compatibility with the common market – Conditions – Important project of common European interest – Development of certain activities

Citations:

[2005] ECR I-10901, [2005] EUECJ C-66/02

Links:

Bailii

Jurisdiction:

European

Banking

Updated: 04 July 2022; Ref: scu.236409

Squirrell Ltd v National Westminster Bank Plc: ChD 22 Apr 2005

The court conisdered the effects of the provisions of the 2002 Act to be to ‘force a party in NatWest’s position to report its suspicions to the relevant authorities and not to move suspect funds or property either for seven working days or, if a notice of refusal is sent by the relevant authority, for a maximum of seven working plus 31 calendar days. Furthermore, the anti-tip off provisions of section 333 of the 2002 Act prohibit the party from making any disclosure which is likely to prejudice any investigation which might be conducted following an authorised disclosure under section 338.
The way these provisions work can be illustrated by the facts of this case. Once NatWest suspected that Squirrell’s account contained the proceeds of crime it was obliged to report that to the relevant authority, in this case the commissioners. It was also obliged not to carry out any transaction in relation to that account. That remains the position unless and until consent to the transactions is given by the commissioners or, if it is not, the relevant time limits under section 335 have expired. In the meantime, it is not allowed to make any disclosure to Squirrell which could affect any inquiries the commissioners might make. Obviously, telling Squirrell why it had blocked its account would constitute a prohibited disclosure.
These provisions could work hardship, as indicated above. But I accept Mr Grodzinski’s submission that it must be assumed that the legislature intended section 328(1) to be of wide scope and for the seven- and 31-day time limits to be sufficient protection of parties in the position of Squirrell.’
The legislation may have very serious consequences for the customer. Laddie J said: ‘I should say that I have some sympathy for parties in Squirrell’s position. It is not proved or indeed alleged that it or any of its associates has committed any offence. It, like me, has been shown no evidence raising even a prima facie case that it or any of its associates has done anything wrong. For all I know it may be entirely innocent of any wrongdoing. Yet, if the 2002 Act has the effect contended for by NatWest and the commissioners, the former was obliged to close down the account, with possible severe economic damage to Squirrell. Furthermore, it cannot be suggested that either NatWest or the commissioners are required to give a cross-undertaking in damages. In the result, if Squirrell is entirely innocent it may suffer severe damage for which it will not be compensated. Further, the blocking of its account is said to have deprived it of the resources with which to pay lawyers to fight on its behalf. Whether or not that is so in this case, it could well be so in other, similar cases. Whatever one might feel, were Squirrell guilty of wrongdoing, if, as it says, it is innocent of any wrongdoing, this can be viewed as a grave injustice. I do not understand Mr Grodzinski to dispute this analysis. He says that the 2002 Act must be regarded as the legislature’s determination of what provisions are necessary to curtail criminals’ ability to profit from crimes. Furthermore, the legislation contains some, albeit restricted, provisions intended to limit harm that these provisions can inflict on innocent parties. It is not for the courts to substitute their judgment for that of the legislature as to where the balance should be drawn. If, as he says is the case here, the legislation is clear, the courts cannot require a party to contravene it.’

Judges:

Laddie J

Citations:

[2005] EWHC 664 (Ch), [2005] 1 All ER (Comm) 749

Links:

Bailii

Statutes:

Proceeds of Crime Act 2002 328(1) 335

Jurisdiction:

England and Wales

Cited by:

CitedUMBS Online, Regina (on the Application Of) v Serious Organised Crime Agency CA 21-Mar-2007
Application for leave to appeal against refusal of leave to bring judicial review of a decision of the respondent agency. Leave to appeal was granted, but the matter was returned to the administrative court for review. . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 04 July 2022; Ref: scu.230948

Lloyds TSB Bank Plc v Hayward: CA 27 Apr 2005

Validity of guarantee and effectiveness of release.

Citations:

[2005] EWCA Civ 466

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

See AlsoLloyds TSB Bank Plc v Hayward CA 12-Dec-2002
The parties disputed, inter alia, what had been agreed at a meeting. A note, prepared after the meeting, was claimed to record it. The judge had declined to make a finding in relation to the date when a note had been written, saying only that, since . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 29 June 2022; Ref: scu.224478

Customs and Excise v Barclays Bank Plc: CA 22 Nov 2004

The claimant had obtained judgment against customers of the defendant, and then freezing orders for the accounts. The defendants inadvertently or negligently allowed sums to be transferred from the accounts. The claimants sought repayment by the bank.
Held: The bank was liable. ‘a duty ought to be imposed on the Bank, towards claimants who have obtained a freezing order, to take care that funds of a person whose account has been frozen pursuant to that order should not be dissipated in breach of that order. I would not be deterred by the apparent absence of any express or deliberate assumption of responsibility on the part of the Bank since I would hold that the law ought to decide that such responsibility should be imposed and that that, in accordance with Phelps, is sufficient. I do not believe that the absence of an express assumption of responsibility should be fatal to the conclusion reached by relying on the first approach. I further conclude, applying the third (incremental) approach, that the imposition of such a duty of care is not to impose on banks liabilities different in kind from the sort of liabilities to which banks have become used at the hands of their customers and others for many years.’

Judges:

Lord Justice Peter Gibson Lord Justice Longmore Mr Justice Lindsay

Citations:

[2004] EWCA Civ 1555, [2005] 1 WLR 2082

Links:

Bailii

Jurisdiction:

England and Wales

Citing:

Appeal fromCommissioners of Customs and Excise v Barclays Bank Plc ComC 3-Feb-2004
The claimant had obtained orders against two companies who banked with the respondent. Asset freezing orders were served on the bank, but within a short time the customer used the bank’s Faxpay national service to transfer substantial sums outside . .
CitedPhelps v Hillingdon London Borough Council; Anderton v Clwyd County Council; Gower v Bromley London Borough Council; Jarvis v Hampshire County Council HL 28-Jul-2000
The plaintiffs each complained of negligent decisions in his or her education made by the defendant local authorities. In three of them the Court of Appeal had struck out the plaintiff’s claim and in only one had it been allowed to proceed.
CitedCaparo Industries Plc v Dickman and others HL 8-Feb-1990
Limitation of Loss from Negligent Mis-statement
The plaintiffs sought damages from accountants for negligence. They had acquired shares in a target company and, relying upon the published and audited accounts which overstated the company’s earnings, they purchased further shares.
Held: The . .
CitedHenderson v Merrett Syndicates Ltd HL 25-Jul-1994
Lloyds Agents Owe Care Duty to Member; no Contract
Managing agents conducted the financial affairs of the Lloyds Names belonging to the syndicates under their charge. It was alleged that they managed these affairs with a lack of due careleading to enormous losses.
Held: The assumption of . .
CitedWhite and Another v Jones and Another HL 16-Feb-1995
Will Drafter liable in Negligence to Beneficiary
A solicitor drawing a will may be liable in negligence to a potential beneficiary, having unduly delayed in the drawing of the will. The Hedley Byrne principle was ‘founded upon an assumption of responsibility.’ Obligations may occasionally arise . .
CitedMareva Compania Naviera SA v International Bulkcarriers SA CA 1-Feb-1975
An ex parte order was sought by the plaintiff to restrain the defendant dispersing his assets.
Held: The court granted the ad personam order requested making use of the jurisdiction given to it by the 1925 Act: ‘A mandamus or an injunction may . .
CitedAl-Kandari v J R Brown and Co CA 1988
A solicitor had undertaken to look after certain passports, but failed to do so. The husband had twice previously kidnapped his children whose custody was an issue before the court. Once the husband regained the passports, he again fled with the . .
CitedNippon Yusen Kaisha v Karageorgis CA 1975
The plaintiff company had chartered a ship to the defendants. A large sum was now claimed for hire, and a string prima facie case made out. The charterers could not be found but there was evidence of funds at a bank in London. An ex parte . .
CitedZ Ltd v A-Z and AA-LL CA 1982
The plaintiffs, an overseas company with an office in London had been defrauded here. They sought and obtained Mareva injunctions against defendants and against six clearing banks. The banks sought clarification of their duties.
Held: The . .
CitedCandler v Crane Christmas and Co CA 15-Dec-1950
Though the accounts of the company in which the plaintiff had invested had been carelessly prepared and gave a wholly misleading picture of the state of the company, the plaintiff could not recover damages. A false statement, carelessly, as . .
CitedZ Bank v DI ChD 1994
A company in contempt of court may have acted with a greater or lesser degree of culpability and the court has a discretion to impose punishment commensurate with that culpability, although some penalty is likely to be appropriate unless the . .
CitedSmith v Eric S Bush, a firm etc HL 20-Apr-1989
In Smith, the lender instructed a valuer who knew that the buyer and mortgagee were likely to rely on his valuation alone. The valuer said his terms excluded responsibility. The mortgagor had paid an inspection fee to the building society and . .
CitedHedley Byrne and Co Ltd v Heller and Partners Ltd HL 28-May-1963
Banker’s Liability for Negligent Reference
The appellants were advertising agents. They were liable themselves for advertising space taken for a client, and had sought a financial reference from the defendant bankers to the client. The reference was negligent, but the bankers denied any . .
CitedWilliams and Another v Natural Life Health Foods Ltd and Another HL 30-Apr-1998
A company director was not personally reliable in negligence for bad advice given by him as director unless it could clearly be shown that he had willingly accepted such personal responsibility. A special relationship involving an assumption of . .
CitedReeman and Reeman v Department of Transport; West Marine Surveyors and Consultants and Richard Primrose Ltd CA 26-Mar-1997
The purchaser of a fishing boat had relied on an incorrect safety certificate in respect of the vessel. He sought to claim in negligence.
Held: The object of the statutory scheme pursuant to which the certificate had been issued was to promote . .
CitedBusiness Computers International Ltd v Registrar of Companies ChD 1988
A winding up petition was served at an address which was not that of the plaintiff’s registered office, and nobody appeared at the hearing. A winding up order was made against the plaintiff company, which now sued the solicitors who had misserved . .
CitedDean v Allin and Watts (a Firm) CA 23-May-2001
An unsophisticated lender running the business of a car mechanic wanted to lend money to borrowers on the security of real property owned by an associate of the borrowers. The borrowers instructed the defendant solicitors to give effect to this . .
CitedElguzouli-Daf v Commissioner of Police of the Metropolis and Another CA 16-Nov-1994
The Court upheld decisions striking out actions for negligence brought by claimants who had been arrested and held in custody during criminal investigations which were later discontinued. The Crown Prosecution Service owes no general duty of care to . .

Cited by:

Appeal fromHM Customs and Excise v Barclays Bank Plc HL 21-Jun-2006
The claimant had served an asset freezing order on the bank in respect of one of its customers. The bank paid out on a cheque inadvertently as to the order. The Commissioners claimed against the bank in negligence. The bank denied any duty of care. . .
Lists of cited by and citing cases may be incomplete.

Litigation Practice, Banking, Negligence

Updated: 27 June 2022; Ref: scu.219675

Marsden v Barclays Bank Plc: QBD 5 Jul 2016

The claimant alleged the mis-selling of interest rate swap contracts by the defendant. The bankk now sought the striking out of the claim, saying that the claimant had settled all such claims in a compromise agreement..

Judges:

Phillips J

Citations:

[2016] EWHC 1601 (QB)

Links:

Bailii

Jurisdiction:

England and Wales

Banking

Updated: 18 June 2022; Ref: scu.566787

In Re Westmaze Ltd (In Administrative Receivership): ChD 15 May 1998

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 charged in the ordinary course of business.

Judges:

David Oliver QC

Citations:

Times 15-Jul-1998

Jurisdiction:

England and Wales

Citing:

CitedRoyal Trust v National Westminster Bank plc CA 1996
A charge was given over the benefits of hire purchase and leasing agreements. The terms of the charge entitled the chargee to require payments under the agreements to be paid into a special account, but the chargee never in fact did so and the . .
CitedIn re Yorkshire Woolcombers Association Ltd ChD 1903
Farwell J said: ‘A charge on all book debts which may now be, or at any time hereafter become charged or assigned, leaving the mortgagor or assignor free to deal with them as he pleases until the mortgagee or assignee intervenes, is not a specific . .
CitedIn re Brightlife 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 . .
Lists of cited by and citing cases may be incomplete.

Banking

Updated: 17 June 2022; Ref: scu.82286

Barclays Bank Plc v Khaira and Another: ChD 6 May 1992

A Bank owed no duty of care to explain the effect of a charge despite the chargee having an account with them. However, if a bank, or its solicitors, elect to give an explanation of documents then it has a duty to explain them accurately

Judges:

Deputy Judge Morison QC

Citations:

Gazette 06-May-1992, [1992] 1 WLR 623

Jurisdiction:

England and Wales

Banking, Legal Professions

Updated: 14 June 2022; Ref: scu.78208