Banker customerDefinition of customerPrivy Council

Commissioner of Taxation v English Scottish and Australian Bank

[1920] Appeal Cases 68319201 min read
The case in brief30-second read
Facts
A question arose regarding who qualifies as a "customer" for the purposes of statutory protection available to collecting bankers. The older view required habitual and prolonged dealings before a person attained "customer" status.
Issue
Who qualifies as a "customer" of a bank for purposes of statutory protection and the banker-customer relationship?
Held
Lord Dunedin held that the word "customer" signifies a relationship in which duration is not essential. A person becomes a customer when the bank accepts the person's money for deposit into an account. The essence is the account relationship, not the length or frequency of dealings.
Principle
A 'customer' is any person who has an account with the bank; habitual dealings or duration of relationship not required
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Facts

  • A question arose regarding who qualifies as a "customer" for the purposes of statutory protection available to collecting bankers
  • The older view required habitual and prolonged dealings before a person attained "customer" status
  • The bank argued that opening an account suffices to establish the relationship

Issue

  1. Who qualifies as a "customer" of a bank for purposes of statutory protection and the banker-customer relationship?

Held

  • Lord Dunedin held that the word "customer" signifies a relationship in which duration is not essential. A person becomes a customer when the bank accepts the person's money for deposit into an account. The essence is the account relationship, not the length or frequency of dealings.

Ratio decidendi

A customer is any person who has an account with the bank. The relationship commences upon opening an account. Habitual or long-standing dealings are not required. Even a single transaction suffices if an account is opened.

Exam use

How to use it in an answer

Foundational for defining "customer" in any banker-customer question. Key line: "Customer = person with an account; duration irrelevant." Cite alongside Ladbroke v. Todd (1914).

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Citation

Commissioner of Taxation v. English Scottish and Australian Bank [1920] Appeal Cases 683

Reported: Appeal Cases (Privy Council). This is an educational summary, not the judgment itself. Cite the reported version in professional or academic work.