Scott v ANZ Bank New Zealand Ltd - [2020] 3 NZLR 145

Equity — Dishonest assistance — Knowing receipt — Negligence — Limitation — Ponzi scheme — Civil claim against principal’s bank — Strike-out application — Whether conduct by bank assisted principal’s breach of trust — Whether actual dishonest state of mind or wilful blindness required — Subjective and objective tests — Whether bank knew how investment money was being applied — Whether bank’s conduct assisted misapplication of investors’ money — Receiving benefit of misapplied funds — Whether bank owing duty of care to third party investors — When loss first suffered — Whether claims statute barred — Limitation Act 1950 ss 21, 21(1)(a), 21(1)(b) and 28.

Negligence — Duty of care — Limitation — Ponzi scheme — Claim against principal’s bank — Strike-out application — Bank’s duty of care to non-customer investors — Whether liability of bank to third parties confined to dishonest assistance — Whether claims statute barred — When loss first suffered — Limitation Act 1950 ss 21, 21(1)(a), 21(1)(b) and 28.

Bankers and banking — Duty of care — Ponzi scheme — Principal of Ponzi scheme bank’s customer — Bank’s liability to third parties — Whether bank owing duty of care to investors of scheme — Whether liability to third parties confined to dishonest assistance — Limitation — When loss first suffered — Limitation Act 1950 ss 21 and 28.