House of Lords

Great Western Railway v London and County Banking Co

[1901] AC 41419011 min read
The case in brief30-second read
Facts
A person without an account at the bank had for many years cashed cheques at its counter. He obtained a cheque by fraud, and the bank collected it for him.
Issue
Whether he was a customer of the bank, so that the bank could rely on the statutory protection given to a banker collecting for a customer.
Held
He was not a customer. Occasional services such as cashing cheques, without an account, do not create the banker-customer relationship, so the bank could not claim the protection.
Principle
An account is essential to make a person a customer of a bank.
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Facts

  • A person without an account at the bank had for many years cashed cheques at its counter. He obtained a cheque by fraud, and the bank collected it for him.

Issue

  1. Whether he was a customer of the bank, so that the bank could rely on the statutory protection given to a banker collecting for a customer.

Held

  • He was not a customer. Occasional services such as cashing cheques, without an account, do not create the banker-customer relationship, so the bank could not claim the protection.

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Citation

Great Western Railway v London and County Banking Co [1901] AC 414

Reported: https://doi.org/10.1007/978-1-349-17757-8_8. This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.