National Bank Ltd v O'Connor

• Jurisdiction: Ireland
• Court: High Court
• Judgment Date: 01 January 1969
• Date: 01 January 1969

(H.C.)

National Bank Ltd

and

O'Connor

Mistake - Bank drafts - Drafts obtained by fraud of teller and handed over to a third party - Lack of proper enquiry by third party - Implied knowledge of fraud - Title to moneys obtained by fraud and mistake of fact -Right to recover proceeds of drafts so obtained -Whether mistake must be inter partes.

T., an employee of the plaintiffs, in 1950 was transferred to the Nenagh branch of the Bank where he met the first named defendant O'C., a customer at this branch and a very successful businessman. T. was transferred to another branch in 1953 and in 1956 he was transferred to the Tuam branch, where he held the position of teller. Between the year 1953 and August,1961 a number of complex transactions took place between T. and O'C., in the course of which O'C., advanced considerable sums of money to T. which were supposed to have been used by a group known to T., for investment in an enterprise which T. alleged had to do with the purchase of motor vehicles for re-sale at such a profit that an unusual rate of interest was paid on the money so advanced. It was not definitely proved that no such group...