Stanford International Bank Ltd (in liquidation) v HSBC Bank PLC [2021] EWCA Civ 535
Stanford International Bank Limited (“SIB”), which collapsed into liquidation in 2009, held multiple accounts with HSBC between 2003 to 2009 (“Accounts”). SIB had debts in excess of US$5 billion arising from its being used as the vehicle for one of the largest Ponzi schemes in history. The liquidators of SIB (“Liquidators”) made two claims against HSBC as follows:
- SIB claimed that HSBC has breached the implied contractual and/or tortious duty owed towards SIB such that HSBC should refrain from executing transfer orders when HSBC had reasonable grounds for believing that the orders are attempts to misappropriate the funds of SIB (Quincecare duty) (the “Loss Claim”); and
- SIB also claimed that they are entitled to an account or equitable compensation in respect of HSBC’s alleged dishonest and/or reckless assistance in breaches of trust and fiduciary duty undertaken by Robert Allen Stanford, SIB’s Chairman and perpetrator of the Ponzi scheme (the “Dishonest Assistance Claim”).
For the Loss Claim, SIB alleged that approximately £118.5 million was paid out of SIB’s Accounts during the period when HSBC ought to have frozen the Accounts. SIB argued that SIB’s state of insolvency made the cash crucial to SIB and it would have had (at least) £80 million more cash as at 17 February 2009 if HSBC had putatively performed its duty. It would then have been able to pay…
