Robb Evans of Robb Evans & Associates v European Bank Ltd

Robb Evans of Robb Evans & Associates (the appellant) brought proceedings against European Bank Ltd (the respondent) in the Supreme Court of New South Wales. The dispute concerned the respondent bank's alleged involvement in the misappropriation of funds by a company called "the Company". The appellant, acting on behalf of defrauded consumers, sought to recover these stolen funds from the respondent. The matter proceeded to the Court of Appeal of New South Wales.

The primary legal issues before the Court of Appeal were whether the exclusionary rule of private international law applied to prevent the enforcement of claims based on foreign consumer protection statutes, and whether a presumed or resulting trust arose over the stolen funds held by the respondent bank. Further questions arose regarding the ability to pursue equitable tracing where the legal owner had a good claim at law, and whether a bank, acting as a mere depository, could be held liable for knowing receipt of trust property, particularly when its conduct was allegedly inconsistent with a trust of which it had constructive knowledge.

The Court of Appeal considered the characterisation of the consumer protection statutes, determining that the exclusionary rule did not apply as the proceedings were brought for the compensatory purpose of reimbursing defrauded consumers, rather than directly enforcing foreign governmental interests. Regarding the trust issues, the court found that an equivalent of an express trust could arise for the purposes of a duty to get in the trust estate, and that equitable tracing was permissible even where the legal owner had a good claim at law. The court also addressed the special treatment afforded to banks, concluding that a bank could not be considered a mere depository if it had constructive knowledge of the trust and its conduct was inconsistent with that trust.

The appeal was dismissed with costs.