Restitution in Private International Law

RESTITUTION IN PRIVATE INTERNATIONAL LAW



Restitution in
Private International Law

GEORGE PANAGOPOULOS
B. A., LL.B (hons.) (Mon.) B.C.L., D.Phil. (Oxon)
Barrister and Solicitor of Victoria, Australia
Solicitor, England and Wales

OXFORD – PORTLAND OREGON
2000


Hart Publishing
Oxford and Portland, Oregon
Published in North America (US and Canada) by
Hart Publishing c/o
International Specialized Book Services
5804 NE Hassalo Street
Portland, Oregon
97213-3644
USA
Distributed in the Netherlands, Belgium and Luxembourg by
Intersentia, Churchillaan 108
B2900 Schoten
Antwerpen
Belgium

© George Panagopoulos 2000
The author has asserted his right under the Copyright, Designs and Patents
Act 1988, to be identified as the authors of this work
Hart Publishing Ltd is a specialist legal publisher based in Oxford, England.
To order further copies of this book or to request a list of other
publications please write to:
Hart Publishing Ltd, Salter’s Boatyard, Oxford OX1 4LB
Telephone: +44 (0)1865 245533 or Fax: +44 (0)1865 794882
e-mail:
www.hartpub.co.uk
British Library Cataloguing in Publication Data
Data Available
ISBN 1 84113–142–3 (cloth)

Typeset by Hope Services (Abingdon) Ltd.
Printed in Great Britain on acid-free paper
by Biddles Ltd, Guildford and King’s Lynn.


“ λλ πειρ ται τ ζημ α σ ζειν, φαιρ ν τ κ ρδο . . . στε
τ πανορθωτικ ν δ καιον ν ε η τ μ σον ζημ α κα κ ρδου ”
Αριστοτ λη , Ηθικ Νικομ χεια, V 4 1132α 9–10, 18–19
“but (the judge) tries to equalize things by the penalty he imposes,
taking away the gain . . . therefore the restitutionary justice is the
mean between loss and gain”
Aristotle, Nicomachean Ethics V 4 1132a 9–10, 18–19



Preface

This book is based on my doctoral thesis, which was submitted at the University
of Oxford in July 1999. It has since been revised and updated.
The subject matter of this book involves the marriage of two areas of law,
restitution and private international law. These are areas which first attracted
my attention as an undergraduate at Monash University. This interest became
more intense, something more like a passion, whilst studying for the B.C.L. at
Oxford.
My greatest thank you and debt is to Adrian Briggs (of St Edmund Hall,
Oxford) and Lionel Smith (of St Hugh’s College, Oxford). I was in the very fortunate position of having two supervisors, each one a leading light in his respective field: private international law and restitution respectively. Their
supervision and generous assistance can not be overstated. Having two supervisors always kept me on my toes, as each one had a different perspective. Their
different perspectives greatly assisted my ability to synthesise these two difficult
areas of law. Their influence can be seen throughout the book.
Many thanks must also go to my doctoral examiners, Professors Peter Birks
and Jonathan Hill. Their comments and views during the examination process
were of particular assistance in converting the thesis into a book.
During my years of graduate study at Oxford I had the benefit of the views
and assistance of a number of people to whom I am also indebted. Directly, or
indirectly, they helped me with this work. They include Professor Martin
Davies, Professor Francis Reynolds, Edwin Peel, Professor Francis Rose,
William Swadling, Dirk Verse, Simone Degeling, Robert Stevens, Francesco
Giglio, Søren Schonberg, James Edelman, Alexandros Stratakis and Dionysios
Flambouras. A warm thank you to Virginia Mavrika for her assistance and support, both whilst working on the thesis and whilst writing this book.
Finally, I wish to also thank my parents, Konstantinos and Maria
Panagopoulos, for their continued love and support.
London
St George’s Day, 2000

G.C.P.

Table of Contents
Table of Cases
Table of Statutes
Works Frequently Cited

INTRODUCTION

xv
xxix
xxv

1

PART I A MAP THROUGH THE LAW OF RESTITUTION
1. A MAP THROUGH THE LAW OF RESTITUTION

5

1. The Existence of a Separate Law of Restitution

5

2. The Elements of a Restitutionary Claim

7

2.1
2.2
2.3

Enrichment
At the Plaintiff’s expense
Unjust Receipt of the Value of the Benefit

3. Personal and Proprietary Remedies—Proprietary Restitution
3.1
3.2
3.3

The Nature of Proprietary Restitution
Proprietary Claims and Proprietary Restitution
Circumstances giving rise to Proprietary Restitution

4. Restitution for Wrongs
4.1
4.2

Availability of Restitution for Wrongs
Taxonomic Location of Restitution for Wrongs

7
9
9
11
13
13
14
15
15

16

5. Tracing

17

5.1
5.2
5.3

17
18
19

What is Tracing?
Why do we Trace?
Tracing at Law and in Equity

6. Defences
6.1
6.2

Change of Position
Defence of Bona Fide Purchaser

21
21
22

x Contents
PART II CHARACTERISATION OF RESTITUTIONARY CLAIMS
2. CHARACTERISATION IN GENERAL
1 The Need for Characterisation
2 The Process of Characterisation
2.1 Problems Associated with Characterisation
2.2 The “Thing” to be Characterised?

27
27
29
29
31

3. CHARACTERISATION OF RESTITUTIONARY CLAIMS
1 One Issue or Several?
2 The Arguments in Favour of a Single Characterisation issue
2.1 Consistent with the Approach in Relation to Contract
and Tort
2.2 Permutations of Legal Systems
2.3 Consistent with Authority
2.4 Macmillan v. Bishopsgate: Which is the Issue?

37
37
38

4. SPECIFIC RESTITUTIONARY CHARACTERISATIONS
1 Restitution and Contract
1.1 Independent Restitutionary Issue

1.2 The Scope of the Restitutionary Issue
1.3 Restitution for Breach of Contract
2 Characterisation of Equitable Rights and Obligations
3 Proprietary Restitution
3.1 The Proprietary Approach
3.1.1 Characterisation of Issues Affecting Property
3.1.2 Proprietary Restitution as Part of the Law of
Property
3.2 The Restitutionary Approach to Characterisation
3.2.1 A Pure Restitutionary Characterisation
3.3 The “Equity” Aspect of Proprietary Restitution
3.3.1 The in personam Nature of Equity
3.3.2 In personam Characterisation of Proprietary
Restitution
3.3.3 Equitable Interests Created via Consensual
Transfers
3.4 The Hybrid Approach to the Characterisation of
Proprietary Restitution
3.4.1 The Scope of the Ancillary Proprietary Issue
4 Characterisation of Restitution for Wrongs
4.1 Characterisation as “Wrongs”
4.2 Cases Dealing with International Restitution for Wrongs

47
47
48
53
57
57
61

62
62

38
40
42
43

65
66
67
70
71
74
75
76
79
81
82
84


Contents xi

5

4.3 Characterisation of Equitable Wrongs
4.3.1 Characterisation of Equitable Wrongs as Breaches
of Trust
4.3.2 Characterisation of Equitable Wrongs as Breaches

of Contract
4.3.3 Characterisation of Equitable Wrongs as
“Wrongs”
4.3.4 Claims for “Knowing Receipt”
5 A Separate Issue of Tracing?
5.1 The Tracing Problem
5.2 The Approaches
5.2.1 Procedural or Substantive Issue?
5.2.2 A Separate Choice of Law Rule?
5.2.3 Characterisation of Tracing
5.2.4 Interest in the Tracing Process
5.3 Ancillary Issues
5.3.1 Intermediate Purchases or Acquisitions
5.3.2 Tracing in Equity and at Law
6 Negotiorum Gestio

86

90
91
94
94
95
96
97
99
100
101
101
102

103

THEORETICAL ISSUES
1 Renvoi
2 The Incidental Question

106
106
107

88
88

PART III CHOICE OF LAW RULES FOR
RESTITUTIONARY ISSUES
6. THE EXISTING AUTHORITIES
1 Introduction
2 Dicey and Morris
3 U.S. Restatement
4 Other Academic Opinion.
5 The English Case Law
6 Other Common Law Cases

111
111
112
115
120
121
125

7. THE VARIOUS PROPOSED CHOICE OF LAW RULES
1 The Place of Enrichment Rule
1.1 Arguments in Favour of Place of Enrichment Rule
1.2 Arguments Against the Place of Enrichment Rule
1.2.1 Unsound Foundation
1.2.2 No general “place of enrichment” rule

133
133
133
134
135
135


xii Contents

2
3

4
5

8

1.2.3 Ignoring other Elements of a Restitutionary Claim
1.2.4 Arbitrary Result
1.2.5 Meaning of Place of Enrichment
Lex Fori

Multiple Choice of Law Rules
3.1 Law of the Contract
3.2 Law of the Relationship
3.3 Lex Situs of Immovables
Proper Law of the Obligation
Proposed Convention on the Law Applicable to
Non-Contractual Obligations
5.1 Scope of the Draft Proposal
5.2 Choice of Law Rule

136
137
138
141
143
143
149
151
153
155
155
156

PREFERRED CHOICE OF LAW RULE
1 The Essential Element of the Unjust Factor
2 Determining the Proper Law of the Unjust Factor
2.1 Mistake
2.2 Illegitimate Pressure
2.3 Failure of Consideration
2.4 Unauthorised Transfer

2.5 Restitution for Wrongs
2.6 Legal Compulsion
2.7 Ultra Vires Payments.
2.8 Illegality and Incapacity

159
159
166
168
169
171
173
174
175
180
180

3 Unjust and Unjustified

181

PART IV JURISDICTION IN RESTITITUTIONARY CLAIMS
9. JURISDICTION UNDER THE BRUSSELS CONVENTION
1 Background to the Convention
2 Interpreting the Convention
3 The Scope of the Convention
4 Application of the Convention.
4.1 The General Rule
4.2 Special Jurisdiction.
4.2.1 Article 5(1)—Matters Relating to a Contract

4.2.2 Article 5(3)—Matters Relating to Tort, Delict
or Quasi-Delict
4.3 Particular Types of Restitutionary Claims

187
187
188
189
192
192
194
196
197
205


Contents xiii
4.3.1 Restitutionary Claims Connected with a
Contract—Article 5(1)
4.3.2 Choice of Court Agreements—Article 17
4.3.3 Proprietary Restitutionary Claims in Relation to
Land—Article 16(1)
4.4 Other Particular Types of Restitutionary Claims
4.4.1 Claims in Equity
4.4.2 Proprietary Restitution
4.4.3 Restitution for Wrongs

206
219
221

225
225
226
228

10. JURISDICTION UNDER THE COMMON LAW RULES
1 Service out of the Jurisdiction
2 Heads of Jurisdiction
2.1 Sub-rule (15): claim for restitution
2.1.1 Questions of Choice of Law
2.2 Sub-rules (5) and (6): claims in relation to contracts
2.2.1 Implied Contract Made within the Jurisdiction
2.2.2 Breach of Implied Contract within the Jurisdiction
2.2.3 The Preferred Approach
2.2.4 Restitutionary Claims Connected with a Contract
2.3 Sub-rule (8): claims in tort
2.3.1 Meaning of “tort”
2.3.2 Damage Sustained within the Jurisdiction
2.3.3 Act Committed within the Jurisdiction
2.4 Sub-rule (10): property within the jurisdiction

231
231
235
235
239
242
242
245
246

250
255
255
258
258
259

CONCLUSION

261

Appendix

265

Index

271



Table of Cases
Aaron Ferer & Sons Ltd v. Chase Manhattan Bank 731 F. 2d 112
(2 Cir. 1984) ...........................................................................................115
Adams v. National Bank of Greece SA [1961] A.C. 255.................................30
Adras Ltd v. Harlow & Jones GmbH (1988) 42(1) P.D.; [1995] R.L.R. 235
(Israel S.C.) ..............................................................................................57
Agip (Africa) Ltd v. Jackson [1990] 1 Ch. 265; aff’d.
[1991] Ch. 547 ....................................................................11, 15, 19–21, 93
Agnew v. Länsförsäkringsbølagens ....[2000] 2 W.L.R. 497 55, 212, 215, 217–18

Air Canada v. British Columbia (1989) 59 D.L.R. (4th) 161..................180, 190
Alaska Airlines Inc v. United Airlines Inc 902 F. 2d 1400 (9th Cir. 1990) ......119
Albaforth, The [1984] 2 Lloyd’s Rep. 91 (C.A.)....................................163, 170
Alexander v. Vane (1836) 1 M. & W. 511.......................................................8
Aluminium Industrie Vaasen BV v. Romalpa Aluminium Ltd.
[1976] 1 W.L.R. 676 (CA).........................................................17, 18, 21, 94
Ambrose v. Kerrison (1851) 10 C.B. 776......................................................103
Ame’s Settlement, Re [1946] Ch. 217 ............................................................10
Amin Rasheed Shipping Corp. v. Kuwait Insurance Co
[1984] A.C. 50 .............................................................27, 105, 232, 234, 240
Anchor Line (Henderson Bros) Ltd, In re [1937] 1 Ch. 483 .....................71, 224
Anderson v. Nobels Explosive (1906) 12 O.L.R. 644 ...................................162
Ansett Transport Industries (Operations) Pty Ltd v. Alenia Aeritalia
& Selenia SpA (1991) 105 F.L.R. 169................................................242, 246
ANZ Banking Group Ltd v. Westpac Banking Corp. (1988)
164 C.L.R. 662 (H.C.A.) .......................................................................6, 10
Anziani, Re [1930] 1 Ch. 407...................................................................63, 99
Apt v. Apt [1948] P. 83 .................................................................................30
Arab Monetary Fund v. Hashim [1993] 1 Lloyd’s Rep. 543;
[1996] 1 Lloyd’s Rep. 589..........................................16, 42, 59–60, 82, 84–6,
89–90, 112, 124–5, 130, 130–8, 153–4, 156
Arab Monetary Fund v. Hashim, 15 June 1994 (unreported); Arab Monetary
Fund v. Hashim (No 9) The Times,
11 October 1994 .................................................................91, 178, 255, 257
Arcado v. Haviland [1988] E.C.R. 1539 ........................................................89
Ashurst v. Pollard [2000] 2 All E.R. 772.................................................73, 224
Astley v. Reynolds (1731) 2 Str. 915 ..............................................................10
Att. Gen. for Hong Kong v. Reid [1994] 1 A.C. 324..........12, 18, 28, 74, 94, 156
Att. Gen. for the UK v. Heinemann Publishers Australia Pty Ltd. (1987)
10 N.S.W.L.R. 86; (1988) 165 C.L.R. 3058–9 .........................................58–9

xvi Table of Cases
Att. Gen. v. Biphosphated Guano Co (1879) 11 Ch.D. 327 ............................22
Att. Gen. v. Blake[2000] 3 W.L.R. 625 (H.L.) ..........................................15, 57
Att. Gen. v. Guardian Newspapers Ltd. (No. 2) [1990] 1 A.C. 109 ................16
Augustus v. Permanent Trustee Co (Canberra) Ltd. (1971)
124 C.L.R. 245 (H.C.A.)...........................................................................59
Australian Postal Corp. v. Lutak (1991) 21 N.S.W.L.R. 584.....................13, 95
Babcock v. Jackson 12 NY 2d 473, 191 NE 2d 279 (1963) ............................116
Baldry v. Jackson [1977] 1 N.S.W.L.R. 494 .................................................177
Bank of Baroda v. Vysya Bank Ltd. [1994] 2 Lloyd’s Rep. 87.......................240
Banque Belge pour l’Etranger v. Hambrouk
[1921] 1 K.B. 321...............................................................11, 19–20, 60, 139
Barclays Bank Plc. v. Glasgow City Council
[1993] Q.B. 429 (H.C.) .............................................................191, 198, 206
Barclays Bank Plc. v. Inc. Incorporated, (1999) 242 A.R. 18
(Alberta Q.B.D.) ......................................................................133, 153, 169
Barclays Bank v. W.J. Simms Son & Cooke (Southern) Ltd.
[1980] Q.B. 677.....................................................................................6, 10
Baring Bros. & Co. Ltd v. Cunningham District Council, The Times, 30
September, 1996 ...................................................52–3, 144, 147–9, 172, 181
Barlow Clowes International Ltd. v. Vaughan [1992] 4 All E.R. 22................20
Barnes v. Addy (1874) 9 Ch. App. 244 ...................................................90, 257
Baroda v. Wildenstein, see Maharanee of Baroda v. Wildenstein
Barton v. Armstrong [1976] A.C. 104 ...........................................................54
Bassett v. Nosworthy (1673) Rep. temp. Finch 102; 23 ER 55 ........................23
Bata v. Bata [1948] WN 366........................................................................163
Batthyanay v. Walford (1887) 36 Ch. D. 269................................30–1, 141,151
Beaudoin v. Trudel [1937] 1 D.L.R. 216........................................................31

Belmont Finance Corp. Ltd v. Williams Furniture Ltd.
[1979] Ch. 250...................................................................................90, 257
Beloit Canada Ltd v. Valmet-Dominion Inc [1997] 3 F.C. 497....................9, 17
Benincasa v. Dentalkit Srl (269/95) [1997] I-E.C.R. 3767............193, 216, 220–1
Bernhard v. Harrah’s Club 16 Cal. 3d 313; 546 P. 2d 719 (1976) ..................117
Bier v. Mines de Potasse d’Alsace SA (21/76) [1976] E.C.R. 1735 ..........189, 202
Bishopsgate Investment Management v. Homan [1995] Ch. 211....................20
Bishopsgate Motor Finance Co Ltd v. Transport Brakes Ltd.
[1949] 1 K.B. 322 ......................................................................................22
Black v. Freedman (1910) 12 C.L.R. 105 .......................................15, 22, 60, 95
Boardman v. Phipps [1967] 2 A.C. 46 ....................................................28, 156
Bonacina, Re [1912] 2 Ch. 394 ...........................................................29, 31, 89
Borden (UK) Ltd. v. Scottish Timber Products Ltd. [1981] Ch. 25................101
Boscawen v. Bajwa [1995] 4 All E.R. 769.................................................18, 20
Boss Group Ltd v. Boss France SA [1997] 1 W.L.R. 351 ..................194, 217–18
Bowling v. Cox [1926] A.C. 751................................................135, 139, 242–9


Table of Cases xvii
Boys v. Chaplin [1971] A.C. 356 ..................39, 86, 91, 96, 164, 176, 240, 256–7
Boyse v. Coclough (1854) 1 K. & J. 124 ........................................................63
BP Exploration Co Ltd v. Hunt [1976] 1 W.L.R. 788 ...............................250–1
BP Exploration Co Ltd v. Hunt (No 2) [1979] 1 W.L.R. 783.................7, 251–2
Brady v. Stapleton (1952) 88 C.L.R. 322 .......................................................20
British South Africa Co v. Companhia de Moçambique
[1893] A.C. 602 ......................................................................63–4, 152, 224
British South Africa Co v. De Beers Consolidated Mines Ltd.
[1910] 2 Ch. 502; [1912] A.C. 52 (H.L.) ........................................58, 71, 224
British Steel Plc. v. C & E Commissioners [1996] 1 All ER 1002;
[1997] 2 All E.R. 366 (C.A.) ................................................10, 180, 190, 192

Brook’s Wharf & Bull Wharf Ltd v. Goodman Bros
[1937] 1 K.B. 534 ...........................................................................6, 11, 176
Buttigeig v. Universal Terminal and Stevedoring Co [1972] V.R. 626...........162
C & E Commissioners v. Bassimeh [1995] S.T.C. 910 .................................178
Cadbury Schweppes Inc v. FBI Foods [1999] 1 S.C.R. 142 ...........................236
Cammell v. Sewell (1858) 5 H. & N. 728 ......................................................64
Campus Holidays Ltd. (in liquidation) v. Charles Porter and Sons Pty Ltd.
(1990) 8 A.C.L.C. 1226 (W.A.S.C.)........................................242, 245–6, 249
Canadian Pacific Ry. v. Parent [1917] A.C. 195 ...........................................164
Car & Universal Finance Co Ltd v. Caldwell [1965] 1 Q.B. 525.....................15
Carl Zeiss Stiftung v. Herbert Smith & Co (No 2) [1969] 2 Ch. 276...............12
Carl Zeiss Stiftung v. Rayner & Keeler Ltd. (No 2)
[1967] 1 A.C. 853......................................................................................63
Castle Phillips Finance v. Piddington [1995] 1 F.L.R. 783 ..............................15
Castree v. E.R. Squibb and Sons Ltd. [1980] 1 W.L.R. 1248..................140, 162
Caton v. Leach Corp. 896 F. 2d 939 (5th Cir. 1990) .....................................119
Cave v. Cave (1880) 15 Ch. D. 639 ...................................................14, 23, 100
Chapman Estate v. O’Hara [1988] 2 W.W.R. 275 .........................................63
Charm Maritime Inc v. Kyriakos [1987] 1 Lloyd’s Rep. 433.........................250
Chase Manhattan Bank NA v. Israel-British Bank (London) Ltd.
[1981] Ch. 105 ...............................12, 13, 14, 15, 17, 18, 20–1, 42, 59, 68, 69,
74, 93, 94, 97, 121–2, 136, 141, 154, 226, 237
Chesworth v. Farrar [1967] 1 Q.B. 407 ....................................................16, 81
Chillingworth v. Esche [1924] 1 Ch. 97 .........................................................10
Church of Scientology v. Metroploitan Police Commissioner (1976)
120 Sol. Jo. 690.......................................................................................163
Clark v. Clark 107 N.H. 351, A. 2d 205 (1966) ............................................118
Clarke v. Shee and Johnson (1774) 1 Cowp. 197, 98 E.R. 1041 .................11, 23
Clayton’s Case (1815) 1 Mer. 572 .................................................................20
Cleadon Trust, Re [1939] Ch. 286 ..................................................................8

Cohn, Re [1945] Ch. 5 ...................................................................29, 31, 35–6
Coin Controls Ltd v. Suzo International (UK) Ltd. [1999] Ch. 33 ..................91


xviii Table of Cases
Colbeam Palmer Ltd v. Stock Affiliates Property Ltd. (1968)
122 C.L.R. 25 .........................................................................................258
Colorificio Paulin SpA v. Soc Sogeref Artlin No 5224, Mass foro it 1989, 731
(Corte di cassazione, Sezione unite) ........................................................195
Commissioner of State Revenue (Victoria) v. Royal Insurance Australia Ltd.
(1994) 182 C.L.R. 51........................................................................180, 190
Companhia de Moçambique v. British South Africa Co
[1892] 2 Q.B. 358......................................................................................71
Companhia de Seguros Imperia v. Heath (Rebx) Ltd., 20 July 2000 (unreported) (C.A.) ..........................................................................................88
Consul Development Pty Ltd v. DPC Estates Pty Ltd. (1975)
132 C.L.R. 373 (H.C.A.)....................................................................90, 257
Cordoba Shipping Co Ltd v. National State Bank Elizabeth, New Jersey
(The Albaforth) [1984] 2 Lloyd’s Rep. 91 (C.A.)......................................140
Cordova Land Co v. Victor Bros Inc [1966] 1 W.L.R. 793 ...........................163
Coulthard v. Disco Mix Club Ltd. [2000] 1 W.L.R. 707
Coupland v. Arabian Gulf Oil Co [1983] 1 W.L.R. 1136 ......33, 44, 77, 102, 107
Courtney, ex parte Pollard, Re (1840) 4 Deac. 27...................................71, 224
Craven-Ellis v. Canons Ltd. [1936] 2 K.B. 403 ...........................................6, 10
Cromie v. Moore [1936] 2 All E.R. 177 .......................................................252
CTN Cash and Carry Ltd. v. Gallaher Ltd. [1994] 4 All E.R. 714 ..................10
Custom Made Commercial Ltd. v. Stawa Metallbau GmbH (288/92)
[1994] E.C.R. I-2913.................................................................189, 194, 200
Davenport v. Corinthian Motor Policies at Lloyd’s [1991] S.L.T. 774 ..........195
David Securities Pty Ltd v. Commonwealth Bank of Australia (1992)
175 C.L.R. 353 ................................................................................180, 190

De Bloos v. Bouyer (14/76) [1976] E.C.R. 1497 ........................172, 212–13, 218
Deglman v. Guaranty Trust Co of Canada [1954] 3 D.L.R. 785 .................6, 48
Delaware Hurst v. General Dynamics Corp. 583 A. 2d 1334 (Del. Ch. 1990) ....115
Diamond v. Bank of London & Montreal [1979] Q.B. 333,
[1979] 1 Lloyd’s Rep. 335 .........................................................140, 163, 170
Dimskal Shipping Co SA v. International Transport Workers Federation
[1992] 2 A.C. 152....................................10, 28, 33, 50-52, 54, 56, 146, 170–1
Diplock, Re [1948] Ch. 465............................................11–12, 14, 20, 228, 236
Distillers Co Ltd. v. Thompson [1971] A.C. 458........................140, 161–2, 164
Domicrest Ltd v. Swiss Bank Corp. [1999] 1 W.L.R. 364 .............................163
Dover, Re (1981) 6 A.C.L.R. 307 ..................................................................20
DR Insurance Co v. Protective National Insurance Co
[1996] 1 Lloyd’s Rep. 74 .........................................................................253
Duke of Wellington, Re [1947] Ch. 506; [1948] Ch. 118 (C.A.) ....................107
Duke v. Andler [1932] 4 D.L.R. 529..............................................................63
Dumez France v. Hessische Landesbank (220/88)
[1990] E.C.R. I-49........................................................................193–4, 201


Table of Cases xix
Durra v. The Bank of NSW [1940] V.L.R. 170 ..........................242, 246–7, 249
Eagle Trust Plc. v. SBC Securities Ltd. [1992] 4 All E.R. 488 ....................19, 93
Earthworks & Quarries Ltd. v. F.T. Easement & Sons Pty Ltd.
[1966] V.R. 24..........................................................................242, 246, 249
Edmunds v. Wallingford (1885) 14 Q.B.D. 811 .............................................11
Effer v. Kanter (38/81) [1982] E.C.R. 825...............................................217–18
Eider, The [1893] P. 119 .............................................................................249
El Ajou v. Dollar Land Holdings Plc. [1993] 3 All E.R. 717;
[1994] 2 All E.R. 685 (C.A.)...................................19, 22, 59–60, 71–2, 92–4,
97–8, 101–2, 123–4, 133, 174, 202, 226

Etler v. Kertesz (1961) 26 D.L.R. (2d) 209................................................172–3
Exall v. Partridge (1799) 8 T.R. 308 ..............................................................11
Falcke v. Scottish Imperial Insurance Co (1886) 34 Ch. D. 234.....................103
Ffrench’s Estate, Re (1887) 21 L.R. (I.R.) 283 ..............................................100
Fibrosa Spolka Akeyjna v. Fairbairn Lawson Combe Barbour Ltd.
[1943] A.C. 32 ....................................................................5, 10, 48, 54, 112
Fincham v. Spencer (1901) 26 V.L.R. 665 ....................................................249
Finnish Marine Insurance Co Ltd v. Protective National Insurance Co
[1990] 1 Q.B. 1078...........................................................................242, 252
First Wisconsin Trust Co v. Shroud 916 F. 2d 939 (5th Cir. 1990).........115, 139
Foskett v. McKeown [[2000] 2 W.L.R. 1299 (H.L.)..................................12, 13
Foster v. Driscoll [1929] 1 K.B. 470 .............................................................148
Friend’s Provident Life Office v. Hillier Parker May & Rowden
[1997] Q.B. 85 ........................................................................................178
G. & H. Montage GmbH v. Irvani [1990] 1 W.L.R. 667................................30
Gebhardt v. Saunders [1892] 2 Q.B. 452 .......................................................11
George Monro Ltd. v. American Cynamid and Chemical Corp.
[1944] K.B. 432.......................................................................................162
Ghana Commercial Bank v. C & ors, The Times, 3 March 1997 .................236
Gibbs-Brower International v. Kirchheimer Bros. Co. 611 F. Supp 122
(D.C. Ill 1985) ........................................................................................115
GL Baker Ltd v. Medway Building & Supplies Ltd.
[1958] 1 W.L.R. 1216 ..........................................................................22, 60
Goldcorp Exchange Ltd. (in receivership), Re [1995] 1 A.C. 74 .......12,13,14, 88
Goring, The [1988] A.C. 831 ......................................................................103
Goss v. Chilcott [1996] A.C. 788 (P.C.).........................................................10
Government of India v. Taylor [1955] A.C. 491..............................................6
Greenwood v. Bennett [1973] 1 Q.B. 195 ........................................................6
Grupo Torras SA v. Al-Sabah [1999] C.L.C. 1,469 (Q.B.D.).................59, 91–2
Gubisch Maschinenfabrik K.G. v. Palumbo (144/86)

[1987] E.C.R. 4861 .................................................................................211


xx Table of Cases
Guinness Mahon & Co. Ltd. v. Kensington L.B.C.
[1998] 2 All E.R. 272...............................................................................182
Gulf Bank K.S.C. v. Mitsubishi Heavy Industries Co.
[1996] 1 Lloyd’s Rep. 323 ................................................................251, 253
Hagen, The [1908] P. 189 ...........................................................................235
Halifax v. Thomas [1995] 4 All E.R. 673...................................................9, 17
Hall v. National General Insurance Co. Ltd. [1967] V.R. 355 ......................128
Hallett’s Estate, Re (1880) 13 Ch. D. 696 ....................................12, 20, 96, 236
Handte GmbH v. Société Traitements Mécano-chimiques des Surfaces
(26/91) [1992] E.C.R. I-3967 ..............................89, 189, 196, 201–2, 213, 228
Hardwick Game Farm v. Suffolk Agricultural Poultry Producers Association
[1966] 1 W.L.R. 287 (C.A.); [1969] 2 A.C. 31 (H.L.) ..................................64
Haumschild v. Continental Casualty Co. (1959) 7 Wis 2d 130 .....................106
Hayward, Re [1997]Ch. 45....................................................................73, 224
Hazell v. Hammersmith and Fulham L.B.C. [1992] 2 A.C. 1........................208
Hemelryck v. William Lyall Shipbuilding Co. [1921] 1 A.C. 698..................252
Hesperides Hotels Ltd. v. Aegean Turkish Holidays Ltd.
[1979] A.C. 508..........................................................................64, 152, 224
Heyman v. Darwins Ltd. [1942] A.C. 356 ...................................................251
Hodge v. Club Motor Insurance Agency Pty. Ltd. [1974] 22 F.L.R.,
[1974] 7 S.A.S.R. 86 473 ................................112–13, 126, 127–128, 153, 177
Hodgkinson v. Simms (1995) 74 C.B.R. 714 ..................................................88
Holiday v. Sigil (1826) 2 C. & P. 176 ............................................................11
Holthausen, ex parte; re Scheibler [1874] L.R. 9 Ch 722 ................................58
Hong Kong and Shanghai Banking Corp. Ltd. v. United Overseas Bank Ltd.
[1992] 2 S.L.R. 495 (H.C. of Singapore) .............................112, 121, 129, 139

Hope v. Hope (1857) 8 De G.M. & G. 731....................................................56
Hospital Products Ltd. v. United States Surgical Corp. (1984)
156 C.L.R. 41 ...........................................................................................88
House of Spring Gardens Ltd. v. Waite [1991] 1 Q.B. 241 ...............84, 229, 258
Hoyles, Re [1911] 1 Ch. 179 .........................................................................63
Huber v. Steiner (1835) Bing N.C. 202 ..........................................................96
Hussey v. Palmer [1972] 1 W.L.R. 1286...................................................12, 15
Industrie Tessili Italiana Como v. Dunlop A.G. (12/76)
[1976] E.C.R. 1473 ...................................................................189, 194, 200
Inglis v. Usherwood (1801) 1 East 515...........................................................64
Intercontex v. Schmidt [1988] F.S.R. 575.....................................................163
ISC Technologies Ltd. v. Guerin [1992] 2 Lloyd’s Rep. 430...............237–8, 240
Ivenel v. Schwab (133/81) [1982] E.C.R. 1891..............................................212
Jackson v. Spittall (1870) L.R.C.P. 542 .......................................................162
James Roscoe (Bolton) v. Winder [1915] 1 Ch. 62 .........................................20


Table of Cases xxi
Jenner v. Sun Oil Co [1952] 2 D.L.R. 526....................................................162
Jogia (A Bankrupt), Re [1988] 1 W.L.R. 484 ..........................42, 112, 123, 133,
135–6, 139, 242, 245, 248–9
John Pfeifer Pty. Ltd. v. Rogerson, 21 June 2000 (unreported) (H.C.A.).......160
Johnson v. Rail Mail Steam Packet Co (1867) L.R. 3 C.P. 38.........................11
Jones Ltd. (RE) v. Waring & Gillow Ltd. [1926] A.C. 670.............................10
Jones (FC) & Sons (Trustee of the property of) v. Jones
[1997] Ch. 159 ...............................................................................12, 14, 19
Kais v. Turvey (1994 ) 17 Family Law Reports (Aus.) 498 .............................15
Kalfelis v. Schröeder, Munchmeyer, Hengst & Co (189/87)
[1988] E.C.R. 5565 ........................189, 193, 197–8, 201, 203–5, 210, 211, 226
Kartika Ratna Thahir v. PT Pertambangan Minyak dan Gas Bumi Negara

(Pertamina) [1994] 3 S.L.R. 257 (Thahir v. Pertamina) .............13, 18, 28, 42,
59, 70, 74, 82, 85–6, 112, 130, 136, 138, 156
Kaufman v. Gerson [1904] 1 K.B. 591....................................................56, 148
Keech v. Sandford (1728) Cas. temp. King 61................................................88
Kelly v. Selwyn [1905] 2 Ch. 117...................................................................65
Kerrison v. Glynn, Mills, Currie & Co (1911) 81 L.J.K.B. 465 (H.L.) ............10
Kirri Cotton Co. v. Dewani [1960] A.C. 192...................................................6
Kleinwort Benson Ltd. v. Glasgow City Council [1996] Q.B. 678 (C.A.);
[1999] 1 A.C. 153 (H.L.) ..................................10, 28, 48, 53–5, 57, 181, 188,
190–1, 193–5, 198–9, 203, 205–8, 210–12, 214, 217–18
Koop v. Bebb (1951) 84 C.L.R. 629 .............................................................162
Koorootang v. A.N.Z. Banking Group [1998] 3 V.R. 16 ............................92–3
Kuwait Oil Tanker Company S.A.K. v. Al Bader, The Independent,
January 11 1999 (Q.B.D.) .........................................................................90
Kwok Chi Leung Karl v. Comm. of Estate Duty
[1988] 1 W.L.R. 1035................................................................................65
LAC Minerals Ltd. v. International Corona Resources Ltd. (1989)
61 D.L.R. (4th) 14 ..................................................................13, 18, 28, 156
Lacey, ex parte (1802) 6 Ves. 625 ..................................................................88
Lamb v. Bunce (1815) 4 M. & S. 275 ..............................................................8
Leathertex Divisione Sintectici SpA v. Bodetex B.V.B.A. [1999] 2 Comm. 769;
[1999] 2 All E.R. (Comm.) 769 (E.C.J.) ..............................................212–13
Leigh v. Dickeson (1884) 15 Q.B.D. 60 ...........................................................8
Lemenda Trading Co. Ltd. v. African Middle East Petroleum Co. Ltd.
[1988] Q.B. 448 ......................................................................................148
Leroux v. Brown (1852) 12 C.B. 801 .............................................................96
Leslie (R) Ltd v. Sheill [1914] 3 K.B. 607 .......................................................15
Leur-Bloem [1998] 2 W.L.R. 27 ..................................................................188
Li Lian Tan v. Durham [1966] S.A.S.R. 143 ................................................128
Lieber v. Göbel [1994] E.C.R. I-2550 ..........................................................223

xxii Table of Cases
Lightning v. Lightning Electrical Contractors Ltd. & ors, 23 April 1998
(unreported)..................................................................................58, 71, 80
Lipkin Gorman v. Karpnale Ltd.
[1991] 2 A.C. 548 ...............................6, 11, 15, 19–23, 40, 60, 92–3, 135, 173
Lloyds Bank Plc. v. Independent Insurance Co. Ltd.
[1999] 2 W.L.R. 986 .................................................................................10
Lofts v. Macdonald (1974) 3 A.L.R. 404 .......................................................20
Lord Napier and Ettrick v. Hunter [1993] A.C. 713 ......................................60
Lord Portalington v. Soulby (1834) 3 My. & K. 104 ......................................71
Loucks v. Standard Oil Co of New York 224 N.Y. 99 (1918).......................143
LTU GmbH v. Eurocontrol (29/76) [1976] E.C.R. 1541 ...............................189
Lucas v. Gagnon (1992) 99 D.L.R. (4th) 125................................................177
Luther v. Sagor [1921] 3 K.B. 532 .................................................................63
Lynch v. DPP of Northern Ireland [1975] A.C. 653 .......................................54
M(K) v. M(H) (1992) 96 D.L.R. (4th) 289 .....................................................90
Macmillan Inc. v. Bishopsgate Investment Trust Plc. (No 3) [1995] 1 W.L.R.
978; [1996] 1 W.L.R. 387 .................................9, 17, 27, 28, 29, 30, 31, 32–3,
34, 36, 43–4, 59, 63, 75–6, 76-9, 94, 99, 101, 102, 111–12, 122, 133, 136, 140
Maharanee of Baroda v. Wildenstein [1972] 2 Q.B. 283...............................231
Mahesan v. Malaysia Government Officers’ Co-operative Housing
Society Ltd. [1979] A.C. 374 .....................................................................60
Maldonado, Re [1954] P. 223 .......................................................29, 30, 31, 32
Marinari v. Lloyd’s Bank Plc. (364/93) [1995] E.C.R. I-2719.................194, 197
Maskell v. Horner [1915] 3 K.B. 106 ............................................................10
Mason v. NSW (1959) 102 C.L.R. 108 ..........................................................10
McAdams Inc v. Boggs 439 F Supp 738 (E.D. Pa. 1977) ...............................115
McKain v. RW Miller & Co (S.A.) (1991) 174 C.L.R. 1....................68, 96, 141

Meeth v. Glacetal (23/78) [1978] E.C.R. 2133 ..............................................220
M’elroy v. M’Alister [1949] S.C. 110...........................................................106
Menten v. The Federal Republic of Germany N.I.P.R. 1987, No 281;
[1991] I.L.Pr. 259....................................................................................191
Mercantile Investment & General Trust Co v. River Plate Trust Loan &
Agency Co [1892] 2 Ch. 303......................................................................72
Metall und Rohstoff AG v. Donaldson Lufkin & Jenrette Inc
[1990] 1 Q.B. 391 ............................................91, 162–4, 239–40, 255, 257–9
Micro Data Base Systems v. Dharma Systems Inc 148 F. 3d 649
(7th Cir 1998)...................................................................................115, 119
Miller v. Race (1758) 1 Burr. 452 ..................................................................23
Ministry of Defence v. Ashman [1993] 2 E.G.L.R. 102 ....................................8
Modus Vivendi Ltd v. The British Products Sanmex Company Ltd.
[1997] I.L.Pr. 654....................................................................................163
Mohammed v. Bank of Kuwait and the Middle East
[1996] 1 W.L.R. 1483..............................................................................250


Table of Cases xxiii
Mölnlycke AB v. Proctor & Gamble Ltd.
[1992] 1 W.L.R. 1112 .................................................................84, 229, 258
Monks v. Poynice Pty. Ltd. (1987) 11 A.C.L.R. 637 (N.S.W.S.C.)....................8
Morgan Guaranty Trust Co. of NY v. Lothian Regional Council
[1995] S.L.T. 299 ....................................................................................148
Morris B Chapman Associates Ltd. v. Kitzman 706 N.E. 2d 1065
(Ill. App. 1999) .......................................................................................115
Moule v. Garrett (1872) L.R. 7 Ex. 101 .........................................................11
Moulox I.B.C. v. Geels (125/92) E.C.R. I-4075 ............................................172
Muschinski v. Dodds (1988) 160 C.L.R. 583 ............................................13, 15
National Bank of Canada v. Clifford Chance (1996)

30 O.R. (3d) 746................................................................................89, 162
National Bank of Greece and Athens SA v. Metliss [1957] A.C. 509 ..............30
National Bank of NZ Ltd. v. Waitaki International Processing (N.I.) Ltd.
[1999] 2 N.Z.L.R. 211 (N.Z.C.A.) ..............................................................7
National Commercial Bank v. Wimborne (1978) 5 B.P.R., 11,598
(N.S.W.S.C.) ......................................................................................58, 71
Nelson v. Larholt [1947] 1 K.B. 339 ....................6, 11, 12, 22–3, 60, 61, 92, 226
Netherlands State v. Rüffer (814/79) [1980] E.C.R. 3807..............................189
Nile Rhapsody, The [1992] 2 Lloyd’s Rep. 399............................................250
Nisbet and Potts’ Contract, Re [1906] 1 Ch. 391 ...........................................22
Nissan v. AG [1968] 1 Q.B. 286......................................................................6
Nissenberg v. Felleman 162 N.E. 2d 304 (Mass. 1959)............................59, 115
Nominal Defendant v. Bagot’s Executor & Trustee Company Ltd.
[1971] S.A.S.R. 346 ..........................................113, 126–8, 153, 176-177, 178
North Ocean Shipping Co. Ltd. v. Hyundai Construction Co. Ltd.
[1979] Q.B. 705 ........................................................................................54
Norton v. Florence Land and Public Works Co. (1877) 7 Ch. D. 332 .............64
Nowell v. Dick 413 F. 2d 1204 (5th Cir. 1969) ......................................115, 118
NY Life Assurance v. Public Trustee [1924] 2 Ch. 101...................................65
Oatway, Re [1903] 2 Ch. 356......................................................12, 20, 96, 236
Offshore Rental Co. v. Continental Oil Co. 22 Cal. 3d 157,
583 P. 2d 721 (1978)................................................................................117
Ogden v. Ogden [1908] P. 46 ...................................................29, 30,31, 34–35
Olib, The [1991] 2 Lloyd’s Rep. 108............................................................253
OSC and Greymac Credit Corp., Re [1988] 52 D.L.R. (4th) 767.....................20
Overseas Development Disc Corp. v. Sangamo Const 686 F. 2d 498
(7th Cir. 1982).........................................................................................115
P v. P [1916] 2 I.R. 400 .................................................................................10
Pao On v. Lau Yiu Long [1980] A.C. 614 ......................................................54
Paramasivam v. Flynn (1998) 160 A.L.R. 203 .....................................59, 89, 90

xxiv Table of Cases
Paul v. Chandler and Fisher Ltd. [1924] 2 D.L.R. 479 ..................................162
Pavey & Mathews Pty Ltd. v. Paul (1987)
162 C.L.R. 221..................................................................6, 8, 10, 48, 246–7
Paynter v. Williams (1833) 1 Cr. & M. 810.....................................................8
Penarth Dock Engineering Co. Ltd. v. Brisford Entertainments
[1952] Q.B. 246 ......................................................................................258
Penn v. Lord Baltimore (1750) 1 Ves. Sen. 444,
27 E.R. 1132 .......................................................................64, 71–2, 74, 224
Peters Bauunternehmung GmbH v. Zuid Nederlandse Aannemers Vereneging
(34/82) [1983] E.C.R. 987 .......................89, 189, 196, 203, 211, 212, 215, 228
Pettkus v. Becker (1981) 117 D.L.R.
(3d) 257 ........................................................6, 12, 15, 42, 59, 69–70, 74, 129
Pfau v. Trent Aluminium Co (1970) 55 N.J. 2d 511 .....................................106
Phillips v. Eyre (1869) L.R. 4 Q.B. 225; (1870) L.R. 6 Q.B. 1 .............39, 86, 164
Phillips v. Phillips (1862) 4 De. G.F. & J. 201; 45 E.R. 1015...........................23
Phoenix Canada Oil Co. Ltd. v. Texaco Inc. 560 F. Supp. 1372
(D. Del., 1983) .........................................................................115, 119, 139
Phrantzes v. Argenti [1960] 2 Q.B. 19 ....................................................68, 141
Piercy, Re [1895] 1 Ch. 83 .......................................................................64, 72
Pilcher v. Rawlins (1872) 7 Ch. App. 259 ..................................................22–3
Pindling v. National Broadcasting Corp. (1984) 14 D.L.R. (4th) 391 ............162
Plozza v. South Australian Insurance Co. Ltd.
[1963] S.A.S.R. 122 ...........................................................177, 178, 126, 128
Polly Peck International Plc. (No. 2), Re [1992] 4 All E.R. 769;
[1998] 3 All E.R. 812 (C.A.) .........................................11, 60, 63, 66, 93, 152
Polly Peck International Plc. v. Nadir (unreported)
17 March 1993...........................................................90, 92, 237–9, 240, 257

Potter v. Broken Hill Co. Pty. Ltd. (1906) 3 C.L.R. 479 .................................63
Powell Duffryn Plc. v. Petereit (214/89) [1992] E.C.R. I-1745..................219–20
Powell Duffryn v. Petereit [1992] E.C.R. I-1745 ............................................89
Proctor & Gamble Phillipine Manufacturing Corp. v. Peter Cremer GmbH
(The Manila) [1988] 3 All E.R. 843 .............................................................8
Queen Elizabeth, The (1949) 82 Lloyd’s List L.R. 803 .................................104
Raeburn v. Raeburn, 20 March 1997 (unreported) (H.C. of Antigua and
Barbuda)..................................................................................................63
Reading Trust Ltd. v. Spero [1930] 1 K.B. 492.............................................249
Red Sea Insurance Co. Ltd. v. Bouygues S.A.
[1995] 1 A.C. 190 .......................................................................87, 240, 256
Regional Municipality of Peel v. The Queen (1993) 98 D.L.R. (4th) 140 ..........8
Reichert v. Dresdner Bank (No. 2) (261/90)
[1992] E.C.R. I-2149..........................................................193, 197, 223, 227
Reichert v. Dresdner Bank [1990] E.C.R. I-27 ...............................193, 223, 227


Table of Cases xxv
Réunion Européene SA v. Spliethoff’s Bevrachtingskantoor BV (51/97)
[1998] E.C.R. I-6511, [1999] I.L.Pr. 205 ..........................................89, 196–7
Robey v. Snaefell Mining Co. (1887) 20 Q.B.D. 152 ....................................249
Roscoe v. Winder [1915] 1 Ch. 62..........................................................12, 236
Ross, Re [1930] 1 Ch. 377 .....................................................................64, 107
Rousillon v. Rousillon (1880) 14 Ch. D. 351 ..........................................56, 148
Rousou’s (A Bankrupt) Trustee v. Rousou
[1955] 1 W.L.R. 545 ..........................................................242, 244–5, 248–9
Rover International Ltd. v. Cannon Film Sales Ltd.
[1989] 1 W.L.R. 912 .................................................................................53
Rowland v. Divall [1923] 2 K.B. 500 .............................................................10
Royal Boskalis Westminster N.V. v. Mountain [1999] Q.B. 674 (C.A.)..........56

Royal Brunei Airlines Sdn. Bhd. v. Tan
[1995] 2 A.C. 378................................................................60, 90, 92–3, 257
Ryder v. Hartford Insurance Co. [1977] V.R. 257........................................128
Saffrey v. Mayer [1901] 1 K.B. 11................................................................251
Saunders v. van der Putte (73/77) [1977] E.C.R. 2383 ....................193, 223, 227
Sayers v. International Drilling Co N/V [1971] 1 W.L.R. 1176..............31–2, 77
Scaramanga v. Stamp (1850) 5 C.P.D. 295 (C.A.) ........................................104
Schwebel v. Ungar (1964) 48 D.L.R. (2d) 644 ..............................................107
SCI Operations v. Cwth of Australia [1996] 139 A.L.R. 595 .................180, 190
Seaconsar Far East Ltd v. Bank Markazi Johmouri Islami Iran
[1994] 1 A.C. 438 .....................................................................123, 232, 245
Selangor United Rubber Estates Ltd v. Craddock (No 3)
[1968] 1 W.L.R. 1555 ........................................................................90, 257
Shearson Lehman Hutton v. TVB (89/91)
[1993] E.C.R. I-139 .............................................................193, 197, 210–11
Shenavai v. Kreischer (266/85) [1987] E.C.R. 239.....................172, 212–13, 218
Shevill v. Press Alliance SA (68/93) [1995] E.C.R. I-415 ........................163, 211
Simpson v. Fogo (1863) 1 H. & M. 195.........................................................63
Sinclair v. Brougham [1914] A.C. 398 ..............................6, 13, 18, 20, 243, 246
Siskina, The v. Distos Compania Naviera SA [1979] A.C. 210..............232, 234
Smith, Re; Lawrence v. Kitson [1916] 2 Ch. 206 ...............................58, 71, 224
Société Générale de Paris v. Dreyfus(1885) 29 Ch. D. 239 ............................234
Somafer SA v. Saar-Ferngas A.G. (33/78) [1978] E.C.R. 2183 ...............189, 203
Sonntag v. Waidman (172/91) [1993] E.C.R. I-1963 .....................................190
Sorrell v. Paget [1950] 1 K.B. 252 ................................................................103
Sottomayor v. De Barros (No. 2) (1879) 5 P.D. 94 .........................................35
South Tyneside Metropolitan BC v. Svenska International Plc
[1995] 1 All E.R. 545 ................................................................................22
Spiliada Maritime Corp. v. Cansulex Ltd.
[1987] A.C. 460 .............................................................232, 233–5, 250, 252

St Blane, The [1974] 1 Lloyd’s Rep. 557 ......................................................104