Lloyd's Maritime and Commercial Law Quarterly
BANKS, SWAPS, RESTITUTION AND EQUITY
Westdeutsche Landesbank Girozentrale v. Islington and Kleinwort Benson v. Sandwell;
Kleinworth Benson v. South Tyneside
In Sinclair v. Brougham,1 the House of Lords held that, as between depositors and shareholders in an ultra vires banking operation, each had a pari passu claim to surviving assets on the winding up of the bank as a result of equitable tracing. Claims at common law were rejected. In Westdeutsche Landesbank Girozentrale v. London Borough of Islington and Kleinwort Benson Ltd. v. Sandwell Borough Council
2 (hereafter referred to as “Swaps 1”) as well as Kleinwort Benson Ltd. v. South Tyneside Metropolitan District Council
3 (“Swaps 2”), similar claims came before
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