Quincecare[1] duty does not require banks to second-guess customers’ clear instructions: Fiona Philipp v Barclays Bank UK PLC [2023] UKSC 25

 
 Introduction
In July 2023, the Supreme Court in Philipp v Barclays Bank UK PLC unanimously held that when a customer clearly authorises and instructs a bank to make a payment, the bank must carry out the instruction promptly, as it is not for the bank to concern itself with the wisdom or risks of its customer’s payment decisions.[2] The Supreme Court narrowed circumstances where a bank may be required to not carry out an instruction without first making further inquiries, to where a bank has reasonable grounds to believe that agents or signatories are attempting to defraud a customer, or concerns regarding a customer's capacity.[3]
This review of banks' duty of care to exercise reasonable care, commonly referred to as the 'Quincecare[4] duty', follows Philipp's somewhat concerning ...