The claimant had been defrauded by a customer of the defendant bank. He brought a claim against the bank, saying that they knew or ought to have known of the fraudster’s activities, and were liable. The Bank denied that the UK courts had jurisdiction saying in particular that no claim arose because it would be out of time, and denying forum conveniens.
Held: In respect of one Trust, but not the two others asserted, there was a serious issue to be tried, and England was clearly the forum conveniens, and service out of the jurisdiction was allowed.
Judges:
Supperstone J
Citations:
[2011] EWHC 876 (QB)
Links:
Jurisdiction:
England and Wales
Citing:
Applied – AK Investment CJSC v Kyrgyz Mobil Tel Ltd and Others PC 10-Mar-2011
Developing Law – Summary Procedures Very Limited
(Isle of Man) (‘Altimo’) The parties were all based in Kyrgyzstan, but the claimant sought a remedy in the Isle of Man which would be unavailable in Kyrgyzstan.
Held: Lord Collins said: ‘The general rule is that it is not normally appropriate . .
Cited – Deripaska v Cherney CA 31-Jul-2009
The court considered where the trial of the action should take place.
Held: The defendant’s appeal failed. Even though the rights sought to be protected were of a proprietary nature, where the rights could properly be said to have arisen under . .
Cited – Paragon Finance Plc (Formerly Known As National Home Loans Corporation Plc v D B Thakerar and Co (a Firm); Ranga and Co (a Firm) and Sterling Financial Services Limited CA 21-Jul-1998
Where an action had been begun on basis of allegations of negligence and breach of trust, new allegations of fraud where quite separate new causes of claim, and went beyond amendments and were disallowed outside the relevant limitation period. . .
Cited – Soar v Ashwell CA 1893
Trustees under a will had entrusted the trust fund to a solicitor for investment. The solicitor exercised all of their administrative and investment powers for them and distributed part of the fund invested to the beneficiaries under the will but . .
Cited – Royal Brunei Airlines SDN BHD v Tan PC 24-May-1995
(Brunei) The defendants were a one-man company, BLT, and the one man, Mr Tan. A dishonest third party to a breach of trust was liable to make good a resulting loss even though he had received no trust property. The test of knowledge was an objective . .
Cited – Dubai Aluminium Company Limited v Salaam and Others HL 5-Dec-2002
Partners Liable for Dishonest Act of Solicitor
A solicitor had been alleged to have acted dishonestly, having assisted in a fraudulent breach of trust by drafting certain documents. Contributions to the damages were sought from his partners.
Held: The acts complained of were so close to . .
Highly Persuasive – Peconic Industrial Development Ltd v Lau Kwok FAI 27-Feb-2009
Hong Kong Court of Final Appeal. The limitation period for a claim in dishonest assistance is 6 years. For limitation purposes a distinction is to be made between two kinds of constructive trustees: those who are fiduciaries and those who are . .
Cited – GL Baker Ltd v Medway Building and Supplies Ltd CA 11-Jan-1958
A claim was made by a company to recover money entrusted to its auditor who fraudulently had paid away some of it to a company of which he was a director. Amendments of pleadings for the purpose of determining the real question in controversy . .
Cited – RG Carter Ltd v Clarke CA 1990
Even in an Order 14 application, the court will, on suitable occasions, be prepared to decide complicated and difficult questions of law.
Lord Donaldson MR said: ‘If a judge is satisfied that there are no issues of fact between the parties, it . .
Cited – Cattley and Another v Pollard and Another ChD 7-Dec-2006
The first defendant solicitor misappropriated money from an estate he was administering. The beneficiaries later commenced proceedings against his wife, alleging knowing assistance. She said that that claim was out of time. The claimant responded . .
Cited – ICI Chemicals and Polymers Ltd v TTE Training Ltd CA 13-Jun-2007
The Defendant had applied for summary judgment under CPR Part 24. One argument was a short point of construction. The Judge suggested the parties agree that he should decide the point as a preliminary issue. They were unwilling so he proceeded on . .
Cited – Statek Corporation v Alford and Another ChD 17-Jan-2008
Evans-Lombe J said: ‘In my judgment, section 21(1) of the Limitation Act 1980, following the decision of Mr Justice Danckwerts in the G.L. Baker Ltd case and the obiter dicta of Lord Esher and Bowen LJ in Soar v Ashwell, is to be construed as . .
Cited – Henry v Hammond KBD 1913
Channell J said: ‘It is clear that if the terms upon which the person receives the money are that he is bound to keep it separate, either in a bank or elsewhere, and to hand that money so kept as a separate fund to the person entitled to it, then he . .
Cited – Schulman v Hewson and others ChD 2002
Blackburne J assumed that a plea of accessory liability was covered by s.21(1)(a). . .
Cited by:
See Also – Williams v Central Bank of Nigeria QBD 24-Jan-2012
The claimant asserted involvement by the defendant bank in a fraud perpetrated against him. Jurisdiction had already been admitted for one trust , and now the claimant sought to add two further claims.
Held: ‘None of the gateways to English . .
See Also – Central Bank of Nigeria v Williams CA 3-Apr-2012
The claimant alleged that he had been defrauded and accused the appellant of involvement in the fraud. The Bank appealed against a finding that the claim against it was not time limited.
Held: The appeal failed. The action was by a beneficiary . .
See Also – Williams v Central Bank of Nigeria CA 2-Jul-2013
The claimant appealed against an order dis-allowing service on it out of the jurisdiction.
Held: Dr Williams’ appeal in respect of the Nigerian law claim was allowed but rejected in respect of the trust claim and the contract claim. . .
See Also – Williams v Central Bank of Nigeria SC 19-Feb-2014
Bank not liable for fraud of customer
The appellant sought to make the bank liable for a fraud committed by the Bank’s customer, the appellant saying that the Bank knew or ought to have known of the fraud. The court was asked whether a party liable only as a dishonest assistant was a . .
Lists of cited by and citing cases may be incomplete.
Jurisdiction
Updated: 05 June 2022; Ref: scu.431904
