Barclays Bank plc v O'Brien

E728344

Barclays Bank plc v O'Brien is a leading 1993 House of Lords decision in English law that established key principles on undue influence and a bank’s duty of inquiry when taking security over a family home.

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Statements (49)

Predicate Object
instanceOf English contract law case
English undue influence case
House of Lords decision
leading case
appliedIn Royal Bank of Scotland plc v Etridge (No 2) NERFINISHED
areaOfLaw banking law
equity
security over matrimonial home
undue influence
citation [1993] 3 WLR 786
[1993] 4 All ER 417
[1994] 1 AC 180
clarifies scope of a bank’s responsibility for misrepresentation by a debtor spouse
when a bank is fixed with constructive notice of undue influence
concerns security over a family home
spousal guarantees
country United Kingdom
court House of Lords NERFINISHED
decisionType appeal decision
defendant Mr O'Brien NERFINISHED
Mrs O'Brien NERFINISHED
establishes bank’s duty of inquiry in non-commercial relationships
constructive notice test for banks in undue influence cases
requirement for banks to take reasonable steps to ensure informed consent
requirement to advise independent legal advice in certain circumstances
holds principles on actual undue influence
principles on presumed undue influence
influenced Royal Bank of Scotland plc v Etridge (No 2) NERFINISHED
judge Lord Browne-Wilkinson NERFINISHED
Lord Griffiths NERFINISHED
Lord Lowry NERFINISHED
Lord Templeman NERFINISHED
Lord Woolf NERFINISHED
jurisdiction England and Wales
keyword bank’s duty of inquiry
constructive notice
matrimonial home
spousal guarantee
undue influence
leadingJudge Lord Browne-Wilkinson NERFINISHED
legalPrinciple a bank is put on inquiry where a wife guarantees her husband’s debts and the transaction is not to her financial advantage
constructive notice arises where a bank fails to make proper inquiry in suspicious circumstances
failure to take reasonable steps to ensure informed consent may render security unenforceable
legalSystem common law
plaintiff Barclays Bank plc NERFINISHED
result security set aside as against the wife
subjectMatter enforcement of a charge over the matrimonial home
wife’s guarantee of husband’s business debts
yearDecided 1993

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Lord Nicholls of Birkenhead notableWork Barclays Bank plc v O'Brien