Flanagan v National Bank

Judgment Date25 March 1939
Docket Number(1937. No. 1188-37.)
Date25 March 1939
CourtHigh Court
National Bank

Liability of customer to bank on foot of promissory notes -Appropriation by the bank of customer's money on deposit receipt to liability on promissory notes - Bank's right to set off customer's liability on promissory notes against money on deposit receipt - Liability of banker to customer - Bills of Exchange Act, 1882 (45 46 Vict., c. 61), ss. 27; 64 (1); 89.

Plaintiff sued a bank to recover a certain sum, alleging that the bank was indebted to her for money deposited with the bank in her name. The bank repudiated liability on the ground that the money on deposit was lawfully appropriated by the bank to discharge the liability of the plaintiff on certain promissory notes payable to the bank alternatively, that the bank was entitled to set off the plaintiff's liability on the promissory notes against the plaintiff's claim. As regards the bank's claim to appropriate the money on deposit in discharge of the plaintiff's liability to the bank, the Court held that on the evidence there was no special contract authorising such an appropriation, and, therefore, applying the decision of the Supreme Court in Bank of Ireland v. MartinIR, [1937] I. R. 189, that such an appropriation could not be made. As regards the bank's claim to set off the plaintiff's liability on the promissory notes against her claim, the plaintiff admitted the bank's right to set off provided she was liable on the promissory notes, but she denied such liability on the ground that there was no consideration for her signature to the notes, and also on the ground that the principal note was void because it was materially altered by her signature to it without the assent of the other parties liable on it. Held, as regards the consideration for the notes, that s. 27 of the Bills of Exchange Act, 1882, as applied to promissory notes by s. 89 of the same Act, made the antecedent...

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1 cases
  • Freaney v Bank of Ireland
    • Ireland
    • High Court
    • 30 July 1975
    ...amount due by them on the liquidator's deposit account. 1 [1937] I.R. 189. 2 [1950] N.I. 132. 3 [1972] A.C. 785. 4 [1937] I.R. 189. 5 [1939] I.R. 352. 6 (1884) 9 App. Cas. 7 (1886) 18 L.R.Ir. 323. 8 [1972] A.C. 785. ...

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