Barclays Bank PLC v Hammersmith LBC (1991)


State of mind of payer & payee may be relevant in unjust enrichment investigation


Appeal by plaintiffs against order granting leave to defendants to amend their points of defence to claims by the bank for restitution of sums paid to the council purportedly pursuant to certain financial transactions including interest rate swap contracts.


In Hazell [FN 1] the contract had been held to be ultra vires the council. In ascertaining where unjust enrichment had occurred there could be no objection to including in the investigation the state of mind of the payer and the payee. Appeal dismissed.