Further developments on Quincecare duty. In PT v Citibank FACV 11/2022, (6 February 2023) the Hong Kong CFA took the opportunity to give clear guidance on a bank’s duty (and liability in debt when in breach) to its customer in respect of fraudulent transfers from the account effected through the instructions of mandatory officers where such instructions called for enquiry by the Bank before acting thereon. As closure of the account post transfers was also similarly unauthorised the customer could recover the debt after demand was finally made years beyond the 6 year limitation period applicable to a damages claim for breach of contract. Moreover, no contributory negligence on the part of the customer could be found as the relevant statutory right is limited to breaches of contract coextensive with tort claims for the same conduct. In so doing the CFA, (by Lord Sumption’s masterful and concise judgment) reversed the outcomes in the courts below.

Link: FACV 11 of 2022