Court of Appeal finds no trust arising from correspondent banking transactions (Zumax Nigeria Ltd v First City Monument Bank plc)

Table of contents

• What are the practical implications of the judgment?
• What was the background?
• What did the Court of Appeal decide?

Article summary

Private Client analysis: Elizabeth Weaver, barrister at XXIV Old Buildings, examines the Court of Appeal’s decision in Zumax Nigeria v First City Monument Bank that, contrary to the High Court’s conclusion, a transfer of international funds via a correspondent account did not give rise to either an express or a Quistclose trust in favour of the intended recipient.