Tournier v National Provincial Bank (1923) | Banker's Duty of Secrecy & 4 Exceptions Explained

Banking Law Case 13 of 29 by Law Easy, for LL.B., CLAT PG, UGC NET Law and Judiciary exams. Case: Tournier v National Provincial and Union Bank of England (1923), English Court of Appeal, decided December 1923 (reported 1924). Lord Justice Bankes stated the four qualifications. FACTS: Tournier was a customer whose account was overdrawn. He agreed to repay the overdraft in small weekly instalments but soon stopped paying. When a cheque in his favour was endorsed to someone else, the bank learned on inquiry that the endorsee was a bookmaker. The manager then telephoned Tournier's employers, told them about the unpaid overdraft and conveyed that Tournier was dealing with bookmakers. The employers did not renew his contract, and Tournier sued the bank. LEGAL ISSUE: Does a banker owe a customer a legal duty of confidentiality, and when may the banker disclose? JUDGMENT: The Court of Appeal held that a banker owes the customer a legal duty of confidentiality implied in the contract between them. The duty is not absolute. Disclosure is permitted (1) under compulsion of law, (2) where there is a duty to the public to disclose, (3) where the interests of the bank require disclosure, and (4) where the customer has expressly or impliedly consented. The duty covers information the bank obtains in its character as banker, even from other sources, and continues after the account is closed. The court ordered a new trial and did not itself award compensation. PRINCIPLE TO REMEMBER: Banking information is private unless a recognised legal reason justifies sharing it. The four qualifications are the starting point of every discussion of bank secrecy. PROVISIONS: Common law and contractual duty of confidentiality; in India, statutes such as the Banker's Books Evidence Act, 1891 are examples of compulsion of law. EXAM NOTE: The four qualifications are exceptions, not a general permission to disclose. Remember that the Court of Appeal ordered a new trial and did not finally decide damages. PLAYLIST (all 29 cases in order): https://www.youtube.com/playlist?list=PLbhYsrMKgACA COMPLETE LECTURE (all 29 cases with timestamps): https://youtu.be/ayAN7RLlfPM PREVIOUS CASE (12, Devaynes v Noble, Clayton's Case): https://youtu.be/tsadVtaDKhk More law notes: https://www.thelaweasy.com If this helps your exam preparation, please subscribe to Law Easy. This video is for education and is not legal advice. #BankingLaw #BankSecrecy #Tournier #CLATPG #Judiciary #LLB #LawEasy