Banking - 2000

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This page lists 32 cases, and was prepared on 01 January 2009.

Homes -v- Smith (2000) Lloyds Law Rep (Banking) 139)
2000 CA Woolf L	Banking	1 Cites 1 Citers
	Where a cheque is offered in payment it amounts to a conditional payment of the amount of the cheque which, if accepted, operates as a conditional payment from the time when the cheque was delivered.

Barclays Bank Plc -v- Coleman and Others [2001] QB 20
5 Jan 2000 CA Nourse LJ	Undue Influence, Banking	Casemap 1 Cites
	It is still the case that a claimant, arguing for a charge to be set aside for undue influence must show some manifest and clear disadvantage arising from the charge. This may be subject to change in the future, but still applies now. A document required to be executed before an independent solicitor, but witnessed by a legal executive with the authority of his solicitor employer was properly executed and counted as having been given under such independent advice.

Skipton Building Society -v- Bratley and another
12 Jan 2000 CA	Banking, Damages
	After a sale by the mortgagee in possession, the judge at first instance had found that the plaintiff had negligently failed to take reasonable care to ensure that the premises were sold at the best price that could reasonably be obtained: Held: Where a lender having sold property secured by a charge took the property into possession and sold it, but failed to obtain the best price reasonably obtainable, any liability of a guarantor of the loan was reduced to the extent of that failure. In calculating damages the task of the court is to determine the true market value of the property, and where there is a bracket of acceptable valuations the court will take the mean figure within that bracket as being the market value.

Global Financial Recoveries Ltd -v- Jones [2000] BPIR 1029
13 Jan 2000 ChD	Limitation, Land, Banking, Limitation	Casemap 1 Citers
	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.
	Statute References omitted

Terence John Kitchen and Patricia Elsie Kitchen -v- HSCB Bank Plc [2000] EWCA Civ 12
25 Jan 2000 CA	Banking
	Link[s] omitted

Raiffeisen Zentralbank Osterreich Ag -v- Cross-Seas Shipping Ltd and Others [2000] 1 WLR 1135; [2000] 3 All ER 274; [2000] 1 All ER (Comm) 76; [2000] LLoyd's Rep Bank 108; [2000] CLC 533
1 Feb 2000 CA	Banking	Casemap 1 Cites
	An alteration to a deed after it had been executed did not necessarily invalidate it. Old rules to that effect need no longer be considered correct. The test was whether any party was adversely affected or the effect of the deed was changed by the alteration. In this case the address of a party to a guarantee had been altered. The alteration was not seen to be significant enough to avoid the deed. Appeal dismissed.

Director of Public Prosecutions -v- Scarlett
7 Feb 2000 CACD	Criminal Sentencing, Banking, Contempt of Court
	A defendant subject to a confiscation order in criminal proceedings for drugs related offences could be ordered to repatriate assets from banks accounts held abroad. The absence of an explicit power in this behalf did not prevent the order because of the wide power to make such ancillary orders to ensure compliance with an order as appeared necessary. An additional punishment for contempt for failing to obey was not punishing him twice, and he could purge the contempt if he chose.

Rank Enterprises Ltd and Others -v- Gerard
10 Feb 2000 CA	Transport, Banking
	Contracts for the sale of ships were supported by bonds guaranteeing their freedom for delivery. Events arose which affected the ships but for which the sellers were not themselves responsible. The guarantee was intended to operate to protect the buyer against any claim arising before delivery, and was not restricted to events which lay at the door of the vendor.

Struggles and others -v- Lloyds TSB plc
10 Feb 2000 TCC	Land, Banking
	A mineral quarry was repossessed under a mortgage and attempts were made to sell it. A claim that it had been sold at an undervalue was defeated. The valuation of such an asset was to make allowance for capitalisation of the income stream from mineral royalties. The sale of the property had been delayed long enough to allow a proper valuation, and a further sale would have put the bank at risk of other allegations. The bank had obtained the best price reasonably obtainable.

Australia and New Zealand Banking Group Ltd and Societe Generale [2000] EWCA Civ 44
17 Feb 2000 CA	Banking
	Link[s] omitted

Mortgage Corporation Ltd -v- Shaire and Another [2000] 1 FLR 973; [2001] Ch 743; [2000] EWHC Ch 452
25 Feb 2000 ChD Neuberger J	Land, Banking, Trusts	Casemap 1 Citers
	The claimant had an equitable charge over the property, and sought a possession order after failures to keep up repayments. The order was sought under the Act, and the claimants asserted that the conditions for the grant of possession were unchanged. Held: Parliament had clearly intended a change. The interests of a chargee ranked alongside those of, for example, children living in the house. This might act to the detriment of banks, and the old authorities, whilst not entirely irrelevant, should be viewed with caution. Where the parties have reached a consensus on the beneficial interests in the property, the court will give effect to it, unless there is very good reason for not doing so, such as a subsequent renegotiation.
	Statute References omitted
	Link[s] omitted

National Westminster Bank Plc -v- Kostopoulos and Another
2 Mar 2000 CA	Undue Influence, Banking
	Where a judge decides that a party has raised a triable argument of undue influence, it should be rare for that assessment to be interfered with on appeal. The judge had given a carefully thought out and detailed explanation of why he had allowed the appeal against strike out, and the matter should proceed.

Hall; John Sidney Hall; Richard Delaney Hall and Dorothy Hilda Mann -v- The Governor and Company of the Bank of England [2000] EWCA Civ 140
19 Apr 2000 CA	Banking
	Link[s] omitted

Regina -v- Common Professional Examination Board, Ex Parte Mealing-Mcclead
2 May 2000 CA	Costs, Legal Professions, Banking
	A party was required to pay money into court before pursuing an appeal. She borrowed money for this purpose but on the express condition that it should be used for this purpose only and was not to become part of her general assets. The money was paid into court, but the appeal was compromised in her favour. The judge ordered payment out to her opponent. She appealed successfully. The trust was as between her and the bank, and no need of others being notified arose. As trustee for the bank, she had a duty to act to recover it, and so had locus standi.

Barings Plc and Others -v- Coopers & Lybrand and Others
5 May 2000 CA	Litigation Practice, Banking
	An investigation and transcripts of interviews in the course of it, by the Banking Supervisor having been conducted under the Act were subject to the restrictions on disclosure mentioned in the Act. Once however the transcripts had been exhibited to an affidavit used in the course of company director disqualification proceedings, they had become part of a public record and the protection was lost.
	Statute References omitted

Crantrave Ltd (In Liquidation) -v- Lloyd's Bank Plc [2000] EWCA Civ 127
18 May 2000 CA	Contract, Banking, Equity	1 Citers
	The bank received a garnishee order nisi, but acted before it was made absolute to pay the judgment creditor. The bank had no defence against the customer claiming restitution relying on the equitable doctrine that one person paying the debts of another without authority was allowed the benefit of the payment. To establish that, the bank would have to show that the act had been subsequently ratified, or that it had been made on his behalf. The mere absence of loss to the customer is insufficient.
	Link[s] omitted

Collins, Etridge; Gonzalez -v- Union Bank of Switzerland Barclays Bank Plc Richard Caplan and Co (a Firm) St Georges Street Trustees Limited St James's Trustees Limited [2000] EWCA Civ 176
25 May 2000 CA Otton LJ, Buxton LJ	Land, Equity, Banking, Legal Professions
	The claimants sought permission to appeal after their claim had been struck out. The claim had alleged fraud against the first defendant, and the court had found that claim to have no real prospect of success. They said that the bank had provided a financial reference upon which they relied in turning down one offer for a golf course development in Spain in favour of an offer apparently supported by the reference. The judge had held that they had not relied on the reference. Held: The documentation made the position clear, and no businessman of any experience would have relied on the purported reference, and the reference was also subject to an effective disclaimer. The evidence now sought to be admitted could with reasonable diligence have been obtained for the trial. No important point of law or practice arose, and leave was refused.
	Link[s] omitted

Shanning International Limited (In Liquidation) -v- Lloyds TSB Bank Plc (Formerly Lloyds Bank Plc) Part 20 and Rasheed Bank and Sbg Holdings Limited Part 20 [2000] EWCA Civ 177; [2000] 3 CMLR 450
25 May 2000 CA Tuckey LJ	Banking	Casemap 1 Cites 1 Citers
	Link[s] omitted

Isabella Doris Briggs Or Broadway -v- Clydesdale Bank Plc [2000] ScotCS 138
26 May 2000 OHCS Lord Macfadyen	Banking, Undue Influence, Scotland
	Where a guarantor sought to deny liability, asserting lack of good faith on the part of the bank, and the bank sought to explain away its failure to ensure that the guarantor was aware of the onerous nature of the guarantee by asserting that the guarantor had had independent advice, the bank could not rely upon dealings with solicitors where it was not explicit that the solicitors were giving such independent advice to the guarantors. What was good faith must depend upon the facts of each case, but in this case the situation was sufficiently unclear to have placed on the bank a duty to enquire.
	Link[s] omitted

Ashton and Another -v- Securum Finance Ltd [2000] EWCA Civ 197; [2001] Ch 291
21 Jun 2000 CA	Litigation Practice, Banking	Casemap 1 Cites 1 Citers
	In the new litigation culture it was correct to strike out a second action which fundamentally re-litigated a case which had previously been struck out on the grounds of abuse of process or delay. The court's case management required it to consider whether it was appropriate to expend time on a case. When facing such an application, the court must have regard to the earlier action, and the decisions then taken. Older rules against striking out where and action could be recommenced without difficulty, should be set aside. Here a bank sought to pursue as a speciality debt a debt it had already claimed as a simple contract debt.
	Link[s] omitted

Regina -v- Inland Revenue Commissioners Ex Parte Banque Internationale a Luxembourg Sa [2000] EWHC Admin 360
23 Jun 2000 Admn	Corporation Tax, Human Rights, Banking
	The commissioners obtained court orders directing the applicant bank to disclose confidential information in their possession. The bank resisted on the ground that the demand breached their rights to confidentiality and to privacy. Although the orders did infringe the Bank's article 8 rights, the notices were valid because the interference was justified under article 8(2). The notices were served in accordance with law, and were justified in pursuit of a legitimate aim and necessary in a democratic system for protecting the taxation system.
	Statute References omitted
	Link[s] omitted

The Bank -v- A Ltd, Mr B, C Ltd, Serious Fraud Office interested party
23 Jun 2000 ChD	Criminal Practice, Banking

Regina -v- Special Commissioners of Income Tax, Ex Parte Inland Revenue Commissioners; R -v- Inland
27 Jun 2000 CA	Banking, Taxes Management
	An application to the commissioner for special authority and consent to inspect bank accounts could be signed by an officer having that authority; for these purposes there was no need to distinguish between an order and a decision and might be oral. A decision refusing such an application on the grounds that it was not signed by the Board was incorrect, and there should be no need to renew the application.
	Statute References omitted

Safa Ltd -v- Banque Du Caire [2000] EWCA Civ 221; [2000] 2 Lloyd's Rep 600
20 Jul 2000 CA Waller LJ, Schiemann and Hale LJJ	Banking	Casemap 1 Citers
	Safa claimed summary judgment as assignee of letters of credit opened by the bank. It was established by concession, and decision for the purposes of the summary judgment application, that even if payment was due under the letters of credit, the bank would have been entitled to immediate reimbursement by the beneficiary and assignor of the liquidated sum payable under the letters of credit. The right to reimbursement would necessarily have been contingent on actual payment. Held: For the purposes of the appeal against the refusal of summary judgment, a defence of set-off would be available.
	Link[s] omitted

Roger Smith and Christopher Timothy Esmond Hayward and Lloyds Bank TSB; Harvey Jones Ltd and Woolwich Plc [2000] EWCA Civ 240
27 Jul 2000 CA	Banking, Torts - Other
	Where a cheque has been altered fraudulently to change the name of the payee, the piece of paper ceases to be a cheque, and an action for conversion against the paying or collecting bank will stand only as to the nominal value of the paper, and not as to the face value. The material alteration was done without the consent of anyone but the party carrying out the fraud, and, under the Act the bill is avoided save against a party making or consenting to the alteration.
	Statute References omitted
	Link[s] omitted

Alliance and Leicester Plc -v- Slayford and Another [2000] EWCA Civ 257
12 Oct 2000 CA	Undue Influence, Banking, Land, Financial Services
	Property was transferred into a divorcing husband's name, and his new partner signed a form disclaiming any rights as against the lender. After possession proceedings, she later asserted that her consent had been obtained by the undue influence of her partner and that her equitable interest was an overriding one. The applicant applied to amend the pleadings to add to the claim for possession a claim against the original chargor for the debt secured. Held: This was not an abuse of process even though the result might be that the partner's insolvency came to defeat the new partner's equitable interest. It was not an abuse of process, where a lender seeking to take possession of a mortgaged property was faced with an assertion of an interest by a resident spouse, for that lender to seek as an alternative, the bankruptcy of the borrower under the loan agreement itself. Such an action was clearly available to them. An occupier in such circumstances could now taking advantage of the more detailed exposition of rights contained in the Act which would be an appropriate way of establishing the protection to be given.
	Trusts of Land and Appointment of Trustees Act 1996
	[ Bailii ]

Barbara Ann Leggatt -v- National Westminster Bank Plc [2001] 1 FLR 563; [2000] EWCA Civ 261
19 Oct 2000 CA	Banking, Undue Influence	Casemap 1 Citers
	Where a wife executed a charge over a jointly owned property to secure her joint debts, and then seventeen years later executed a replacement charge to secure borrowings of the husband and she had received independent advice, she could not assert that the bank was fixed with notice of the undue influence of her husband. In any event the new charge was not on its face disadvantageous to her. If the new charge had not been executed the business would have failed, and she would have been caught by the earlier charge in any event.
	[ Bailii ]

Bank of Ireland -v- Hollicourt (Contracts) Limited [2000] EWCA Civ 263
20 Oct 2000 CA	Insolvency, Banking	Casemap 1 Cites 1 Citers
	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 the legislation made the disposition void, but that did not operate in the way claimed. The company had already by making out the cheques ordered its bank as agent to pay on them, and the bank had no beneficial interest it could dispose of. These need not be affected by whether the account was in credit. The automatic retrospective avoidance was limited by the terms of the section its purpose.
	Statute References omitted
	Link[s] omitted

Morris -v- Banque Arab et Internationale D'Investissment SA (No 2)
26 Oct 2000 ChD	Insolvency, Banking
	For an order to be made under the section, and a contribution to the shortfall on insolvency made, it was necessary to show that the person against whom the order was sought had in some way participated in the fraudulent activity. It was not necessary to show that there had been any direct involvement in the management or carrying on of the business.
	Statute References omitted

First National Bank Plc -v- Walker and Another [2000] EWCA Civ 3015; [2001] 1 FCR 21; [2001] 1 FLR 505; [2001] Fam Law 182
23 Nov 2000 CA	Undue Influence, Family, Banking, Land, Banking	Casemap
	A claim that a bank's charge should be set aside as having been obtained by the undue influence of a co-mortgagee was parasitic upon a claim as between the co-mortgagors in family proceedings. The wife sought as against the bank to challenge the validity of the charge, but asserted the existence of the charge in the course of proceedings which continued in parallel to the possession proceedings. She could not blow hot and cold. The claim against the husband and subsequent transfer had included an explicit acknowledgement by her of the charge, and that decided the issue between her and the bank.
	Link[s] omitted

First National Bank Plc -v- Walker and Another [2000] EWCA Civ 3015; [2001] 1 FCR 21; [2001] 1 FLR 505; [2001] Fam Law 182
23 Nov 2000 CA	Undue Influence, Family, Banking, Land, Banking	Casemap 1 Citers
	A claim that a bank's charge should be set aside as having been obtained by the undue influence of a co-mortgagee was parasitic upon a claim as between the co-mortgagors in family proceedings. The wife sought as against the bank to challenge the validity of the charge, but asserted the existence of the charge in the course of proceedings which continued in parallel to the possession proceedings. She could not blow hot and cold. The claim against the husband and subsequent transfer had included an explicit acknowledgement by her of the charge, and that decided the issue between her and the bank.
	Link[s] omitted

Surrey Asset Finance Ltd -v- National Westminster Bank plc
30 Nov 2000 QBD	Banking	Casemap 1 Citers
	That a cheque was endorsed "account payee" did not mean that the drawer of the cheque would be entitled to damages for conversion from a paying bank crediting it to a different account. to succeed under this section the claimant had to show an immediate right to possession of the cheque. There appeared to be no evidence that the cheque has not been delivered to the payee. It appeared that the conversion took place after that delivery. The possession in the section referred to legal possession rather than their physical custody. Since the section deemed good delivery, there was no conversion as against the claimant. An entitlement to injunctive relief did not amount to an immediate right to possession under the section. In this case of the cheque would have been paid in any event, and there was no demonstrable loss arising from the payment of the cheque into a different account.
	Statute References omitted