What is the scope of banks’ duties to customers in executing their customers’ instructions? In particular, what are banks’ duties if the instruction is the instrument of fraud?
- Earlier this month, the Court of Appeal overturned the previous decision of the High Court in Philipp v Barclays Bank UK Plc.
- The claim concerned the liability of Barclays Bank for carrying out transfers that constituted an ‘authorised push payment’ fraud on Mrs Philipp – transfers that were requested and authorised by her, but induced by a third party through the use of fraudulent representations.
- Mrs Philipp had argued that Barclays was liable for her losses because of its failure to comply with its Quincecare duty – a duty that has risen to prominence as a result of several high-profile cases in recent years.