Jones v Churcher & Anor [2009] EWHC 722 (QB) (18 March 2009)

Jones v Churcher & Anor [2009] EWHC 722 (QB) (18 March 2009)

The payment of £42,300 to the first defendant was made under a mistake and not for good consideration. The first defendant did not act in good faith in changing her position, as she had sufficient knowledge to doubt the legitimacy of the payment and failed to make adequate inquiries or attempt to return the money. The defence of change of position was therefore rejected. The second defendant (Abbey National) was not liable as it acted as a ministerial recipient and did not unjustly enrich itself.

Citation
[2009] EWHC 722
Parties
Claimant: Stephen John Edmond Jones; First Defendant: Kelly Churcher; Second Defendant: Abbey National PLC
Jurisdiction
England and Wales
Judgment Date
18 March 2009
Procedural Posture
Civil Claim (restitution/mistaken Payment) / High Court (queen's Bench Division) Judgment
Outcome
Judgment for the claimant against the first defendant; claim against the second defendant dismissed.
Legal Topics
Mistaken Payment, Change of Position Defence, Ministerial Receipt, Unjust Enrichment
Restitution Banking Law Contract Law Mistaken Payment Change of Position Defence Ministerial Receipt Unjust Enrichment

Case Brief

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Parties

Stephen John Edmond Jones

Claimant

Kelly Churcher

First Defendant

Abbey National PLC

Second Defendant

Procedural Posture

Civil Claim (restitution/mistaken Payment) / High Court (queen's Bench Division) Judgment

Legal Issues

  1. 1 Was the payment of £42,300 to the first defendant made under a mistake?
  2. 2 Was the payment made for good consideration?
  3. 3 Does the defence of change of position apply to the first defendant?

Ratio Decidendi

The payment of £42,300 to the first defendant was made under a mistake and not for good consideration. The first defendant did not act in good faith in changing her position, as she had sufficient knowledge to doubt the legitimacy of the payment and failed to make adequate inquiries or attempt to return the money. The defence of change of position was therefore rejected. The second defendant (Abbey National) was not liable as it acted as a ministerial recipient and did not unjustly enrich itself.

Court Disposition

Judgment for the claimant against the first defendant; claim against the second defendant dismissed.

Orders

  • First defendant (Kelly Churcher) to pay the claimant £42,300 (less any sums already returned or remaining in her account).
  • Claim against Abbey National PLC dismissed.