Royal Bank Of Scotland Plc v Wallace International Ltd [2000] EWCA Civ 16 (27 January 2000)

Royal Bank Of Scotland Plc v Wallace International Ltd [2000] EWCA Civ 16 (27 January 2000)

Doctus plc held the credit balance in the Doctus WI Account on trust for Wallace International Ltd, RBS had notice of the trust and was not entitled to set off the balance against Doctus's liabilities. Wallace was not estopped or had not acquiesced in RBS's actions. The award of compound interest at 1% above base rate with quarterly rests was appropriate.

Citation
[2000] EWCA Civ 16
Parties
Claimant: Wallace International Ltd; First Defendant: Royal Bank of Scotland plc; Second Defendant: Doctus plc
Jurisdiction
England and Wales
Judgment Date
27 January 2000
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Constructive Trusts, Bankers' Right of Set Off, Priority of Equitable Interests, Acquiescence and Estoppel, Compound Interest Awards
Trusts Banking Law Company Law Constructive Trusts Bankers' Right of Set Off Priority of Equitable Interests Acquiescence and Estoppel Compound Interest Awards

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Parties

Wallace International Ltd

Claimant

Royal Bank of Scotland plc

First Defendant

Doctus plc

Second Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Doctus plc held the credit balance in the Doctus WI Account on trust for Wallace International Ltd
  2. 2 Whether Royal Bank of Scotland plc had notice of the trust and was precluded from exercising set-off against the credit balance
  3. 3 Whether Wallace International Ltd was estopped or had acquiesced in RBS's actions

Ratio Decidendi

Doctus plc held the credit balance in the Doctus WI Account on trust for Wallace International Ltd, RBS had notice of the trust and was not entitled to set off the balance against Doctus's liabilities. Wallace was not estopped or had not acquiesced in RBS's actions. The award of compound interest at 1% above base rate with quarterly rests was appropriate.

Court Disposition

appeal dismissed

Orders

  • Declarations that Doctus held the Doctus WI Account monies on trust for Wallace
  • RBS to pay Wallace the credit balance of £2,718,547 as at 20 June 1991