C - CHAPS payments
31/7/14
TIDAL ENERGY LTD v BANK OF SCOTLAND PLC [2014] EWCA Civ 1107
The claimant completed a CHAPS instruction form for the defendant to pay funds to a named company. As a result of alleged fraud, the account number and sort code stated on the form were not those of the named company. The receiving bank with the quoted sort code, credited the funds to an account with the quoted number but the account name was not that of the named company. The claimant claimed the defendant had not made an effective payment because the funds had not gone to the named company. The judge’s dismissal of the claim was upheld by a majority decision. By signing the CHAPS instruction, the claimant agreed to payment being made in accordance with the usual banking practice applicable to CHAPS payments. On the undisputed evidence, CHAPS payments were processed by reference to sort code and account number rather than account name. The defendant had discharged its mandate by carrying out the CHAPS instructions as it did.
13/9/13
TIDAL ENERGY LTD v BANK OF SCOTLAND PLC [2013] EWHC 2780 (QB)
The claimant completed a CHAPS instruction form for the defendant to pay funds to a named company. As a result of alleged fraud, the account number and sort code stated on the form were not those of the named company. The receiving bank with the quoted sort code, credited the funds to an account with the quoted number but the account name was not that of the named company. The claimant claimed the defendant had not made an effective payment because the funds had not gone to the named company. The claim failed. By signing the CHAPS instruction, the claimant agreed to payment being made by CHAPS. On the undisputed evidence, CHAPS payments were processed by reference to sort code and account number rather than account name. The defendant had discharged its mandate by carrying out the CHAPS instructions as it did.