European Bank Ltd v Citibank Ltd [2004] NSWCA 76

Reported Decision : 60 NSWLR 153

New South Wales Court of Appeal

CITATION : European Bank Ltd v Citibank Ltd [2004] NSWCA 76 HEARING DATE(S) : 08/12/2003; 09/12/2003, 10/12/2003 JUDGMENT DATE : 25 March 2004

JUDGMENT OF : Spigelman CJ at 1; Handley JA at 24; Santow JA at 84 DECISION : 1. Appeal allowed with costs.; 2. Orders 2 and 7 made by Palmer J on 4 April 2003 set aside.; 3. In lieu thereof order that judgment be entered for the cross-claimant European Bank Ltd for the debt sued for together with interest at a rate or rates appropriate for a debt in United States dollars.; 4. Order that interest accrue on the judgment at a rate appropriate for a debt in United States dollars.; 5. The cross-defendant Citibank Ltd is to pay the cross-claimant's costs of the proceedings before Palmer J.; 6. The parties are directed to bring in short minutes of the judgment to be entered pursuant to Order 3 and the order to be made pursuant to Order 4 before Handley JA on 8 April 2004 at 9.30 am unless agreed short minutes have previously been filed with the Registrar of this Court.

CATCHWORDS : BANKING - foreign currency - US dollar account in Sydney - transactions on account effected through correspondent banks in New York - US dollar funds in Sydney account not attachable in New York - depositor has no proprietary interest in funds deposited with bank - EXECUTION - debt owed by bank on Sydney account - debt not attachable by process against debtor bank in New York - PRIVATE INTERNATIONAL LAW - debt owed by bank on Sydney account - situs of debt in New South Wales - discharge of debt governed by proper law - proper law that of New South Wales - debt not discharged by attachment in New York - D Adams v National Bank of Greece [1961] AC 255 Arab Bank Ltd v Barclays Bank Ltd [1954] AC 495 Barcelo v Electrolytic Zinc Co of Australasia Ltd (1932) 48 CLR 391 C. Czarnikow Ltd v Centrala Handlu Zagranicznego Rolimpex [1979] AC 351 Citibank NA v Wells Fargo Asia Limited 495 US 660 (1990) Codelfa Construction Pty Ltd v State Rail Authority of New South Wales (1982) 149 CLR 337 Foley v Hill (1848) 11 HLC 28 [9 ER 1002] Foskett v McKeown [2001] 1 AC 102 Huntington v Attrill [1893] AC 150 CASES CITED : Investors Compensation Scheme Limited v West Bromwich Building Society [1998] 1 WLR 896 Maggbury Pty Ltd v Hafele Australia Pty Ltd (2001) 210 CLR 181 Manas y Pineiro v Chase Manhattan Bank NA 434 NYS 2d 868 (1980) New York Life Insurance Co v Public Trustee [1924] 2 Ch 101 CA Perez v Chase Manhattan Bank NA 463 NE 2nd 5 (1984) Royal Botanic Gardens and Domain Trust v South Sydney City Council (2002) 76 ALJR 436 Societe Eram Shipping Co Ltd v Compagnie Internationale de Navigation [2003] 3 WLR 21 Tilley v Official Receiver in Bankruptcy (1960) 103 CLR 529 Tsakiroglou & Co Ltd v Noblee Thorl Gmbh [1962] AC 93 Wanganui Rangitikei Electric Power Board v The Australian Mutual Provident Society (1934) 50 CLR 581 PARTIES : European Bank Ltd (Appellant) Citibank Ltd (Respondent) FILE NUMBER(S) : CA 40331/03 COUNSEL : T Bathurst QC/J Halley (Appellant) M Walton SC/E A Collins (Respondent) SOLICITORS : Baker & McKenzie (Appellant) Dibbs Barker Gosling (Respondent)