White & Case advises UK Finance in landmark UK Supreme Court case on APP fraud and banks’ so-called ‘Quincecare duty’

Global law firm White & Case LLP has represented UK Finance, the official trade body for the UK's banking and finance industry, in its intervention before the UK Supreme Court in Philipp v Barclays Bank UK PLC [2023] UKSC 25, in which judgment was handed down on July 12, 2023.

White & Case partner Lawson Caisley, who led the Firm's team representing UK Finance, said: "The Court's definitive analysis of the basis and limits of the so-called 'Quincecare duty' provides much needed clarity for the banking industry and consumers alike."

The case concerns banks' duties to customers who become victims of authorised push payment (APP) fraud. APP fraud is a significant problem, with UK Finance estimating that there were over £485 million of APP fraud losses in the UK during 2022 alone.

In its decision, the Supreme Court unanimously granted Barclays' appeal, and provided a definitive analysis of the basis and limits of banks' so-called 'Quincecare duty'.

In summary, the Court determined that a bank does not owe its customer a duty to refrain from carrying out a payment instruction if the bank has reasonable grounds for believing the customer is being defrauded. The so-called 'Quincecare duty' has no application in APP fraud cases such as Philipp, because they do not involve dishonesty to defraud the customer by the customer's agent. The Court's decision also includes welcome analysis and clarification about the basis and scope of the principles applied in Quincecare and similar cases. Further information and analysis of the judgment can be found here.

The White & Case team in London representing UK Finance was led by partner Lawson Caisley, with support from counsel Adam Wallin and associate Jonny Galbraith Brown.

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