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EQUITABLE TRACING: Overdrawn accounts and backward tracing

16 June 2017  

Mark Pawlowski considers the case for accepting backwards tracing as part of English law

In Bishopsgate Investment Management Ltd (in liquidation) v Homan [1994], the Court of Appeal held that the equitable remedy of tracing did not extend to tracing through an overdrawn bank account, whether it was already overdrawn at the time the relevant money was paid into it or which was then in credit but subsequently became overdrawn by subsequent drawings.

 

Additional Info

  • Case(s) Referenced:

    Agricultural Credit Corporation of Saskatchewan v Pettyjohn (1991) 79 DLR (4th) 22

    Banque Financiere de la Cite v Parc (Battersea) Ltd [1991] 1 AC 221

    Bishopsgate Investment Management Ltd (in liquidation) v Homan [1994] EWCA Civ 33

    Boscawen v Bajwa [1995] EWCA Civ J0410-10

    Box & ors v Barclays Bank [1998] Lloyd’s Law Reports Banking 185

    Federal Republic of Brazil v Durant International Corporation [2015] UKPC 35

    Foskett v Mckeown [1998] Ch 265

    Re Goldcorp Exchange Ltd [1994] UKPC 3

    James Roscoe (Bolton) Ltd v Winder [1915] 1 Ch 62

    Moriarty v Atkinson [2008] EWCA Civ 1604

    Primlake Ltd v Matthews Associates & ors [2006] EWHC 1227 (Ch)

    Shalson & Mimran & ors v Russo & ors [2003] EWHC 1637 (Ch)

    Turner v Jacob [2006] EWHC 1317 (Ch)