header-logo header-logo

30 September 2020 / Chris Bushell , Ceri Morgan
Issue: 7904 / Categories: Features , Profession , Commercial
printer mail-detail

Customer payments: Held to account

28458
Processing customer payments: key litigation risks for banks, examined by Chris Bushell & Ceri Morgan

In brief

  • Quincecare duty of care (payment made).
  • Dishonest assistance (payment made).
  • Breach of contract claims (payment not made).

In a trend of recent cases, the court has considered the duties owed by banks to their customers in relation to processing payments into and out of their current or depository accounts. These claims are remarkable both because of the variety of different but intertwining causes of action which have been pursued, and because they stem from such an unremarkable and essential function.

The common theme is that the customer’s payment mandate was made in circumstances where the bank (allegedly) was, or should have been, alerted to the existence of fraud or inappropriate activity in relation to the account. The judgments emphasise the public policy of enlisting banks and financial institutions in the fight against financial crime and money laundering, which has influenced the court’s decision as to whether the relevant

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Sackers—Zak Ullah

Sackers—Zak Ullah

Sackers welcomes new associate

Christy Davies—Birmingham Law Society

Christy Davies—Birmingham Law Society

Ward Hadaway lawyer joins Birmingham Law Society Council

Ellisons—Stephanie Westwood & Anisa Khan

Ellisons—Stephanie Westwood & Anisa Khan

Ellisons expands Chelmsford commercial litigation team with two appointments

NEWS
Businesses incorporating open-source software into commercial products could face obligations to disclose valuable source code, with AI-assisted development making licensing risks harder to track
Careless client checks do not automatically make a solicitor dishonest, but deliberately avoiding confirmation of suspected wrongdoing can cross the line
Construction workers injured in comparable accidents can face sharply different routes to compensation on opposite sides of the Atlantic
Victims of undue influence may have more options than simply unwinding a tainted transaction, with courts able to order profits accounts, compensation and, exceptionally, severance
Disabled people could lose vital safeguards following the Supreme Court’s reversal of the Cheshire West test for deprivation of liberty, two barristers warn
back-to-top-scroll