West v Commercial Bank of Australia Limited [1935] HCA 14

West v Commercial Bank of Australia Limited [1935] HCA 14

The appellant, with knowledge of the bank's departure from his strict instructions and of his son drawing cheques alone, acquiesced in or ratified the practice, and by standing by, precluded himself from contesting the bank's right to debit his account. The appellant's conduct amounted to ratification or estoppel, and he is not entitled to recover the amounts claimed nor avoid liability for the overdraft.

Parties
Appellant; Plaintiff: Leonard Thomas West, senior; Respondent; Defendant: Commercial Bank of Australia Ltd.
Jurisdiction
Australia
Procedural Posture
Appeal (civil) / On Appeal From the Supreme Court of New South Wales; Judgment of Full Court Affirmed by High Court
Outcome
Appeal dismissed with costs.
Legal Topics
Estoppel, Acquiescence, Ratification, Banker and Customer Relationship
Banking Law Equity Estoppel Acquiescence Ratification Banker and Customer Relationship

Case Brief

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Parties

Leonard Thomas West, senior

Appellant; Plaintiff

Commercial Bank of Australia Ltd.

Respondent; Defendant

Procedural Posture

Appeal (civil) / On Appeal From the Supreme Court of New South Wales; Judgment of Full Court Affirmed by High Court

Legal Issues

  1. 1 Whether the appellant was entitled to recover moneys paid by the bank on cheques not countersigned as originally authorised
  2. 2 Whether the appellant was estopped or had ratified the bank's conduct by acquiescence

Ratio Decidendi

The appellant, with knowledge of the bank's departure from his strict instructions and of his son drawing cheques alone, acquiesced in or ratified the practice, and by standing by, precluded himself from contesting the bank's right to debit his account. The appellant's conduct amounted to ratification or estoppel, and he is not entitled to recover the amounts claimed nor avoid liability for the overdraft.

Court Disposition

Appeal dismissed with costs.

Orders

  • Judgment for the bank (respondent) for the sum claimed in cross-action (£554 11s. 9d.)
  • Appeal against Full Court decision dismissed with costs