Shields v Bank of Ireland

• Jurisdiction: Ireland
• Judge: M. R.
• Judgment Date: 21 November 1900
• Court: Chancery Division (Ireland)
• Docket Number: (1899. No. 882.)
• Date: 21 November 1900

Shields

and

The Governor and Company of the Bank of Ireland.

M. R.

(1899. No. 882.)

CASES

DETERMINED BY

THE CHANCERY DIVISION

OF

THE HIGH COURT OF JUSTICE IN IRELAND,

AND BY

THE IRISH LAND COMMISSION,

AND ON APPEAL THEREFROM IN

THE COURT OF APPEAL.

1901.

Banker and customer — Executor paying trust money into credit of his own account — Liability of bank.

A lodged to the credit of his private account at a bank moneys which belonged to him and B, as executors of C. The bank had notice that the moneys so lodged were trust moneys, but had no notice that A intended to commit a breach of trust, and placed the moneys to the credit of A's account in the ordinary way. A afterwards became insolvent, and his account was overdrawn. B brought an action against the bank and A, to have it declared that the bank were trustees of the moneys so lodged on behalf of B and A, as executors of C:—

Held, That The Bank Were Not Liable.

Trial of Action.

The facts of the case and the authorities cited are sufficiently stated in the head note and judgment.

The Solicitor-General (Wright, Q.C.), Henry, Q.C., and Patchell, for the plaintiff.

T. Pakenham Law, Q.C., Ronan, Q.C., and Pim, for the defendants, the Bank of Ireland.

The Master of the Rolls:—

This action was brought by James Shields against the Bank of Ireland and Michael Shields to have it declared that certain sums of £1330, £142 19s. 7d., £1504 15s. 6d., and £967 15s 4d., were assets of Patrick O'Neill, deceased, and that the defendants, the Bank of Ireland, were trustees of the said moneys on behalf of the plaintiff and the defendant Michael Shields, as executors of the said Patrick O'Neill, deceased. Patrick O'Neill, of Annaghmore, in the county of Tyrone, died on the 3rd February, 1897, having by his will, dated the 27th October, 1891, appointed the plaintiff and the defendant Michael Shields his executors. His will was proved by James and Michael Shields, on the 23rd Sept., 1897. It appears from the statement of claim that Michael Shields was the proprietor of a private bank at Cappagh, in the county Tyrone, and had an account at the Omagh branch of the Bank of Ireland, and that the sums claimed in this action represented the proceeds of the realisation of the assets of Patrick O'Neill, which were lodged from time to time, between November, 1897, and January, 1898, to the credit of Michael Shields' account at the Omagh branch. The plaintiff alleges that the bank had notice through their agent, that the...