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RDG
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Andrew Dickinson rightly points up Dextra
v BoJ on the change of position point.
Less obviously, however, the case also seems to blow
out of the water the HL decision in Jones v Waring & Gillow. In both cases
the essential scenario is the same: A is duped by B into drawing a cheque
in favour of C, for which C gives value. Jones allows A to recover from
C on the basis that he has paid C by mistake, and that C, not being a
holder in due course, has no defence. But, as Dextra points out, this
can't be right. Even if C wasn't a holder in due course, he was a holder
for value and could have sued A on the cheque if it hadn't been met, and
you can't use restitution to get back sums you were bound to pay the defendant
in the first place.
Dextra, I suggest, must be correct on this point and
Jones wrong. The only puzzle is why this argument was thought only to
be relevant if Dextra relied on the payment of the cheque, rather than
its acquisition by BoJ, as giving Dextra a cause of action. I would have
thought that once BoJ had *acquired* the cheque for value, they had a
right to sue on it from that moment, and hence that Dextra were out of
court anyway. Or am I missing something?
Andrew
Andrew Tettenborn MA LLB Tel: 01392-263189 / +44-392-263189 (international) Snailmail: School of Law, [ Homepage: http://www.ex.ac.uk/law/
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