Dextra Bank & Trust Company Limited v Bank of Jamaica [2002] UKPC 50 is a recent and important case in unjust enrichment

Unjust enrichment

Unjust enrichment is a legal term denoting a particular type of causative event in which one party is unjustly enriched at the expense of another, and an obligation to make restitution arises, regardless of liability for wrongdoing.Definition:...

 in the Privy Council

Privy council

A privy council is a body that advises the head of state of a nation, typically, but not always, in the context of a monarchic government. The word "privy" means "private" or "secret"; thus, a privy council was originally a committee of the monarch's closest advisors to give confidential advice on...

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Facts

Dextra drew a cheque for $2,999,000 from its bankers to lend to the Bank of Jamaica. Its agents told Dextra the money was for a loan. The Bank of Jamaica was told the money was for foreign currency purchased by its agents. They gave the money to the agents, but the agents were fraudsters. Dextra wanted restitution.

Judgment

The Privy Council held that the claim failed, first because Dextra had made no relevant mistake of fact, and second because the Bank of Jamaica had changed its position. On the question of the change of position defence, Dextra argued that the Bank of Jamaica were relatively at fault, and therefore their defence should fail. Lord Bingham and Lord Goff said in the course of their advice,