Daiwa Ruling Reinforces Banks' Duty To Guard Against Fraud
Law360, London (November 4, 2019, 11:37 AM GMT) -- Britain's highest court has reinforced the duty of care banks owe to corporate clients to help protect against fraud in a watershed decision, finding that a Japanese bank negligently paid out hundreds of millions of dollars from a customer's account when evidence of fraud was obvious.
The Supreme Court upheld an appellate ruling against Daiwa Capital Markets Europe on Wednesday, the first time that a bank has been found liable for breaching its so-called Quincecare duty of care, which essentially requires lenders not to allow their customers to be defrauded.
In a unanimous ruling, the court found that Daiwa had breached...
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!