Queen Or McLaughlin (AP) v Allied Irish Bank & Anor [2000] ScotCS 322 (15 December 2000)

Queen Or McLaughlin (AP) v Allied Irish Bank & Anor [2000] ScotCS 322 (15 December 2000)

No obligation to account arises on the part of a collecting bank upon lodgment of a cheque for collection; the bank's obligation is to present the cheque for payment, and only upon receipt of funds does a debtor-creditor relationship arise. Therefore, arrestment served on the collecting bank prior to clearance is ineffective.

Citation
[2000] ScotCS 322
Parties
Pursuer and Respondent: Mrs. Anne Teresa Queen or McLaughlin (A. P.); First Defenders and Appellants: Allied Irish Bank; Second Defender: Robert McLaughlin
Jurisdiction
Scotland
Judgment Date
15 December 2000
Procedural Posture
Appeal (from Sheriff Court) / Opinion of the Court (inner House, Extra Division)
Outcome
Appeal allowed; Sheriff's interlocutor recalled; action dismissed.
Legal Topics
Arrestment on the Dependence, Obligation to Account, Bank Customer Relationship, Cheque Clearance, Furthcoming, Agency Vs. Debtor Creditor Relationship
Banking Law Civil Procedure Enforcement of Judgments Arrestment on the Dependence Obligation to Account Bank Customer Relationship Cheque Clearance Furthcoming +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 16 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Mrs. Anne Teresa Queen or McLaughlin (A. P.)

Pursuer and Respondent

Allied Irish Bank

First Defenders and Appellants

Robert McLaughlin

Second Defender

Procedural Posture

Appeal (from Sheriff Court) / Opinion of the Court (inner House, Extra Division)

Legal Issues

  1. 1 Whether a collecting bank incurs an arrestable obligation to account to a customer upon lodgment of a cheque for collection, prior to clearance.
  2. 2 Whether arrestment served on a collecting bank by a creditor of its customer is effective before the cheque is cleared.

Ratio Decidendi

No obligation to account arises on the part of a collecting bank upon lodgment of a cheque for collection; the bank's obligation is to present the cheque for payment, and only upon receipt of funds does a debtor-creditor relationship arise. Therefore, arrestment served on the collecting bank prior to clearance is ineffective.

Court Disposition

Appeal allowed; Sheriff's interlocutor recalled; action dismissed.

Orders

  • Recall of Sheriff's interlocutor of 21 July 1999.
  • Dismissal of the action.