United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, (2006) 360 N.R. 218 (HL)

Case DateJune 21, 2006
JurisdictionCanada (Federal)
Citations(2006), 360 N.R. 218 (HL)

U.K. v. Barclays Bk. (2006), 360 N.R. 218 (HL)

MLB headnote and full text

Temp. Cite: [2007] N.R. TBEd. JA.022

Her Majesty's Commissioners of Customs and Excise (respondents) v. Barclays Bank plc (appellants)

([2006] UKHL 28)

Indexed As: United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc

House of Lords

London, England

Lord Bingham of Cornhill, Lord Hoffmann, Lord Rodger of Earlsferry, Lord Walker of Gestingthorpe and Lord Mance

June 21, 2006.

Summary:

At issue on this appeal was whether a bank, notified by a third party of a freezing injunction (i.e., a Mareva injunction) granted to the third party against one of the bank's customers, affecting an account held by the customer with the bank, owed a duty to the third party to take reasonable care to comply with the terms of the injunction. The judge at first instance found in favour of the bank. The third party appealed.

The Court of Appeal allowed the appeal and found in favour of the third party. The bank appealed.

The House of Lords allowed the appeal, holding that the bank owed no duty of care to the third party to ensure that no payments were made out of the customer's accounts.

Banks and Banking - Topic 2029

Liability of banks to third parties - Duties of banks - To holders of Mareva injunctions - [See Torts - Topic 77 ].

Damages - Topic 531

Limits of compensatory damages - Remoteness - Torts - Recoverable damages - Purely economic loss - [See Torts - Topic 77 ].

Torts - Topic 77

Negligence - Duty of care - Relationship required to raise duty of care - At issue on this appeal was whether a bank, notified by a third party of a freezing injunction (i.e., a Mareva injunction) granted to the third party against one of the bank's customers, affecting an account held by the customer with the bank, owed a duty to the third party to take reasonable care to comply with the terms of the injunction - The House of Lords found in favour of the bank - The bank owed no duty of care to the third party to ensure that no payments were made out of the customer's accounts.

Cases Noticed:

Perre v. Apand Pty. Ltd., [1999] HCA 36; 198 C.L.R. 180, refd to. [paras. 4, 71].

Sutherland Shire Council v. Heyman (1985), 157 C.L.R. 424 (Aust. H.C.), refd to. [paras. 4, 84].

Caparo Industries v. Dickman et al., [1990] 1 All E.R. 568; [1990] 2 A.C. 605; 108 N.R. 81 (H.L.), refd to. [paras. 4 et seq].

Hedley Byrne & Co. v. Heller & Partners Ltd., [1963] 2 All E.R. 575; [1964] A.C. 465 (H.L.), refd to. [paras. 4 et seq.].

Ministry of Housing and Local Government v. Sharp, [1970] 2 Q.B. 223 (C.A.), refd to. [paras. 4, 38, 52, 95].

Smith v. Bush, [1990] 1 A.C. 831 (H.L.), refd to. [paras. 4 et seq.].

Arbuthnott et al. v. Fogan and Feltrim Underwriting Agencies Ltd. et al., [1995] 2 A.C. 145; 173 N.R. 173 (H.L.), refd to. [paras. 4 et seq.].

Henderson v. Merrett Syndicates Ltd. - see Arbuthnott et al. v. Fogan and Feltrim Underwriting Agencies Ltd. et al.

White et al. v. Jones et al., [1995] 2 A.C. 207; 179 N.R. 197; [1995] 1 All E.R. 691 (H.L.), refd to. [paras. 4 et seq.].

Spring v. Guardian Assurance plc et al., [1995] 2 A.C. 296; 174 N.R. 164 (H.L.), refd to. [paras. 4 et seq.].

Williams et al. v. Natural Life Health Foods Ltd. et al., [1998] 1 W.L.R. 830; [1998] A.C. 830; 225 N.R. 368 (H.L.), refd to. [paras. 4, 35].

Phelps v. London Borough of Hillingdon, [2001] 2 A.C. 619; 261 N.R. 201 (H.L.), refd to. [paras. 4, 38, 95].

Gangway Ltd. v. Caledonian Park Investments (Jersey) Ltd., [2001] 2 Lloyd's Rep. 715, refd to. [para. 10].

Z. Ltd. v. A-Z and AA-LL, [1982] Q.B. 558, refd to. [paras. 11 et seq.].

Z Bank v. D1 et al., [1994] 1 Lloyd's L.R. 656, refd to. [paras. 11, 101].

Searose Ltd. v. Seatrain UK Ltd., [1981] 1 W.L.R. 894 (Q.B.), refd to. [para. 13].

P1 et al. v. Bedfordshire County Council, [1995] 2 A.C. 633; 185 N.R. 173 (H.L.), refd to. [para. 16].

Digital Equipment Corp. v. Darkcrest Ltd., [1984] Ch. 512, refd to. [para. 18].

Business Computers International Ltd. v. Registrar of Companies, [1988] Ch. 229, refd to. [paras. 18, 47, 106].

Al-Kandari v. Brown (J.R.) & Co. (A Firm), [1988] 1 All E.R. 833; [1988] Q.B. 665 (C.A.), consd. [paras. 18, 47, 106].

Hudson, Re, Hudson v. Hudson, [1966] Ch. 207, refd to. [para. 20].

Chapman v. Honig, [1963] 2 Q.B. 502 (C.A.), refd to. [para. 20].

Dean v. Allin & Watts, [2001] EWCA Civ. 758; [2001] 2 Lloyd's Rep. 249, refd to. [paras. 22, 107].

Attorney General v. Times Newspapers Ltd., [1992] 1 A.C. 191 (H.L.), refd to. [paras. 29, 57].

Attorney General v. Punch Ltd., [2003] 1 All E.R. 289; [2003] 1 A.C. 1046 (H.L.), refd to. [paras. 29, 58].

Donoghue v. Stevenson, [1932] A.C. 562 (H.L.), refd to. [paras. 31, 69].

Morgan Crucible Co. v. Hill Samuel & Co., [1991] Ch. 295; [1991] 1 All E.R. 453 (C.A.), refd to. [para. 36].

Stovin et al. v. Norfolk County Council, [1996] A.C. 923; 202 N.R. 290 (H.L.), refd to. [para. 39].

Gorringe v. Calderdale Metropolitan Borough Council, [2004] N.R. Uned. 65; [2004] 1 W.L.R. 1057 (H.L.), refd to. [para. 39].

Anns v. Merton London Borough Council, [1978] A.C. 728 (H.L.), refd to. [paras. 51, 69, 84].

Attorney General v. Leveller Magazine Ltd., [1979] A.C. 440 (H.L.), refd to. [para. 57].

Brooks v. Commissioner of Police of the Metropolis et al., [2005] 1 W.L.R. 1495; 338 N.R. 1; [2005] UKHL 24, refd to. [para. 60].

Elguzouli-Daf v. Commissioner of Police, [1995] Q.B. 335 (C.A.), refd to. [para. 60].

Coggs v. Bernard (1703), 2 Ld. Raym. 909; 92 E.R. 107 (K.B.), refd to. [para. 73].

Ultramares Corp. v. Touche (1931), 174 N.E. 441 (N.Y.C.A.), refd to. [para. 74].

Murphy v. Brentwood District Council, [1991] 1 A.C. 398; 113 N.R. 81 (H.L.), refd to. [para. 84].

A. v. C. (Note), [1981] Q.B. 956, refd to. [para. 108].

TSB Private Bank International SA v. Chabra, [1992] 1 W.L.R. 231 (P.C.), refd to. [para. 108].

Mercantile Group (Europe) AG v. Aiyela et al., [1994] Q.B. 366 (C.A.), refd to. [para. 108].

Norwich Pharmacal Co. v. Customs and Excise Commissioners, [1974] A.C. 133 (H.L.), refd to. [para. 108].

Authors and Works Noticed:

Hoyle, Mark, The Mareva Injunction and Related Orders (3rd Ed. 1997), pp. 138, 139 [para. 20].

Mitchell, Paul, and Mitchell, Charles, Negligence Liability for Pure Economic Loss (2005), 121 L.Q.R. 194, p. 199 [para. 4].

Stapleton, Jane, Duty of Care and Economic Loss: A Wider Agenda (1991), 107 L.Q.R. 249, p. 255 [para. 100].

Counsel:

Michael Brindle, Q.C., and Richard Handyside (instructed by Lovells), for the appellants;

Philip Sales and Daniel Stilitz (instructed by Her Majesty's Revenue and Customs Solicitors Office), for the respondents.

Agents:

None disclosed.

This appeal was heard before Lord Bingham of Cornhill, Lord Hoffmann, Lord Rodger of Earlsferry, Lord Walker of Gestingthorpe and Lord Mance of the House of Lords.

The decision of the House was delivered on June 21, 2006, when the following opinions were filed:

Lord Bingham of Cornhill - see paragraphs 1 to 24;

Lord Hoffmann - see paragraphs 25 to 41;

Lord Rodger of Earlsferry - see paragraphs 42 to 67;

Lord Walker of Gestingthorpe - see paragraphs 68 to 77;

Lord Mance - see paragraphs 78 to 114.

To continue reading

Request your trial
3 practice notes
  • Sabourin and Sun Group of Companies v. Laiken, (2015) 470 N.R. 89 (SCC)
    • Canada
    • Canada (Federal) Supreme Court of Canada
    • December 10, 2014
    ...C.A.), refd to. [para. 44]. United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2007] 1 A.C. 181; 360 N.R. 218; [2006] UKHL 28, refd to. [para. Attorney General v. Punch Ltd., [2003] 1 A.C. 1046; [2002] UKHL 50, refd to. [para. 45]. Z. Ltd. v. A-Z, [198......
  • Sabourin and Sun Group of Companies v. Laiken, (2015) 332 O.A.C. 142 (SCC)
    • Canada
    • Canada (Federal) Supreme Court of Canada
    • December 10, 2014
    ...C.A.), refd to. [para. 44]. United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2007] 1 A.C. 181; 360 N.R. 218; [2006] UKHL 28, refd to. [para. Attorney General v. Punch Ltd., [2003] 1 A.C. 1046; [2002] UKHL 50, refd to. [para. 45]. Z. Ltd. v. A-Z, [198......
  • Kovacs v. TD Financial Group et al., 2010 ONSC 6111
    • Canada
    • Ontario Superior Court of Justice of Ontario (Canada)
    • September 30, 2010
    ...[para. 31, footnote 9]. United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2006] 4 All E.R. 256; 360 N.R. 218 (H.L.), refd to. [para. 35, footnote Mahmud Jamal and Adam Hirsh, for the moving parties (defendants other than Nagy); Charles F. Scott and Da......
3 cases
  • Sabourin and Sun Group of Companies v. Laiken, (2015) 470 N.R. 89 (SCC)
    • Canada
    • Canada (Federal) Supreme Court of Canada
    • December 10, 2014
    ...C.A.), refd to. [para. 44]. United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2007] 1 A.C. 181; 360 N.R. 218; [2006] UKHL 28, refd to. [para. Attorney General v. Punch Ltd., [2003] 1 A.C. 1046; [2002] UKHL 50, refd to. [para. 45]. Z. Ltd. v. A-Z, [198......
  • Sabourin and Sun Group of Companies v. Laiken, (2015) 332 O.A.C. 142 (SCC)
    • Canada
    • Canada (Federal) Supreme Court of Canada
    • December 10, 2014
    ...C.A.), refd to. [para. 44]. United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2007] 1 A.C. 181; 360 N.R. 218; [2006] UKHL 28, refd to. [para. Attorney General v. Punch Ltd., [2003] 1 A.C. 1046; [2002] UKHL 50, refd to. [para. 45]. Z. Ltd. v. A-Z, [198......
  • Kovacs v. TD Financial Group et al., 2010 ONSC 6111
    • Canada
    • Ontario Superior Court of Justice of Ontario (Canada)
    • September 30, 2010
    ...[para. 31, footnote 9]. United Kingdom (Her Majesty's Commissioners of Customs and Excise) v. Barclays Bank plc, [2006] 4 All E.R. 256; 360 N.R. 218 (H.L.), refd to. [para. 35, footnote Mahmud Jamal and Adam Hirsh, for the moving parties (defendants other than Nagy); Charles F. Scott and Da......

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT