StudentShare solutions
Triangle menu

The case of Libyan Arab Foreign Bank v Bankers Trust Co [1989] QB 728 - Essay Example

Nobody downloaded yet

Extract of sample
The case of Libyan Arab Foreign Bank v Bankers Trust Co [1989] QB 728

This traditional approach can be seen in the case of Serbian Loans3 any contract that is not a contract between states in their capacity as subjects of international law is based on the municipal [domestic] law of some country The rules thereof may be common to several states and may even be established by international conventions or customs, and in the latter case may possess the character of true international law governing relations between states.4 Therefore when it comes to investment contracts between states then it will have elements of adhering to the contractual word of the agreement; as well as the duty of care that the obligations are met as in public international contractual agreements. There has been a suggestion that cases that are on a private international matter allows the domestic court that makes the decision have an extraterritorial effect in imposing the obligation across borders, i.e. applying the higher standard of obligation and care that public international law holds.5 On the other hand, the case of Holmes v Bangladesh Biman6 argued that foreign jurisdictions have no legitimate reason for subjecting their civil law on foreigners in their own country. Therefore these two cases make it difficult for correctly pursuing fraud, negligence or any circumstance that leads to an action when it is a case of foreign investment, i.e. where would you make the action and could you legally serve and enforce the action papers in foreign jurisdiction.
However, it seems that the Libyan Bank Case was ahead of its time although it did surround a time of terrorism that was strikingly the same as the 9-11 attacks, such as the Lockerbie case. Therefore business law is under an obligation at state and at international levels to protect security, by imposing a duty for businesses to disclose any actions that would indicate terrorism, organized crime or threaten national and international security. Yet, as the following case study will illustrate that freezing assets is a common approach and duty of the bank that is mainly prevalent in Post 9-11, which the Libyan Bank Case failed to do.7
On 2 September, High Court of Justice in London rules in favor of Libya, orders Bankers Trust London to transfer to Libyan Arab Foreign Bank $131 million, plus accrued interest, that has been blocked by US assets freeze. US Treasury authorizes payment on 9 October.
2) In the era of terrorism and protection of the security of states, this means that financial institutions and international businesses are embarking on a different era of state co-operation. Companies are faced with being diligent in ensuring that they are free from fear of money laundering investigations. On of the strictest guidelines can be seen in the EU, therefore Barclays Bank Plc the fourth largest bank in the world ensures that their regulations are strict as their mother state is the UK. It has been realized that one of best methods to stop organized crime is through stricter policing of finances. The EU has become a lot stricter in this area, especially in respect to opening bank accounts and the ID required ...Show more


1) The case of Libyan Arab Foreign Bank v Bankers Trust Co [1989] QB 728 is an indication of the new approach to banking and business in the era of terrorism. Although it pre dates September 11th 2001 it indicates the modern approach that banks, companies and financial institutions are under a duty to disclose any information are a threat to national security.1 The main difference in post-September 11th 2001 it is a duty to disclose to the international community, which is a total change to the face of modern business law…
Author : rjerde
The case of Libyan Arab Foreign Bank v Bankers Trust Co [1989] QB 728
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"The case of Libyan Arab Foreign Bank v Bankers Trust Co [1989] QB 728"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Palsgraf v. Long Island Railroad Co
Given the competitive nature of businesses and the desire to actualize profit maximization, cases that touch on tort law still appear in the court law. Nonetheless, there are tort cases that stem from accidents, unforeseen and even foreseen circumstances that harm clients.
5 pages (1250 words) Essay
Critique of British Foreign Policy in Regard of Libyan Revolution 2011
I break down my critique on the policies by looking at various parts of the Libyan governmental structure that are affected by the policies put in place. The different sections include Libyans economy, its political structure and the social effect that the country faces in the course of the implications.
7 pages (1750 words) Essay
Equity and trust, Case Study. Case-Barclays Bank v Quistclose (1970) AC 567
The principle established in this case is the equity requiring that the person receiving a property from another person for a specific purpose cannot treat it as his or her own and should use it only for that specific purpose; also, the transferee cannot keep that property if that specific purpose cannot be fulfilled, as interpreted by Peter Gibson J 1 Thus, this landmark decision has led to the concept of Quistclose trust, which has become a form of trust as a way of protection to the lender 2.
6 pages (1500 words) Essay
A constructive trust is the formula through which the conscience of equity finds its expression. per Cardozo J, Beatty v Guggenheim Exploration Co. (1919) 225
And when these two words join in a sentence where a level of consciousness is reached to give a righteous decision, then we tend to believe that the judgment is an accurate one. So, what is the definition of trust in a legal context? There is a myriad of definitions because
8 pages (2000 words) Essay
In the light of the decision in Bankers Insurance Co Ldt v South (2003) EWHC 380, consider to what extent exclusion clauses in hooliday insurance contracts shou
In several contexts, these exclusion clauses resulted in non payment of insurance benefiting the insurance companies but leaving agony to the
12 pages (3000 words) Essay
Letters of credit have been described as the lifeblood of international commerce. (Kerr LJ in RD Harbottle (Mercantile) Ltd v National Weatminster Bank Ltd [1978] QB 146,155) Critically discuss
The title was again reconfirmed in Intraco v Notis.2 To better understand what letters of credit are, how they are used and why it was called “the lifeblood of
14 pages (3500 words) Essay
Letters of credit have been described as the lifeblood of international commerce. (Kerr LJ in RD Harbottle (Mercantile) Ltd v National Westminster Bank Ltd QB 146, 155). Critically discuss
Gillies & Moen (2000) go further to state that letters of credits are autonomous. They are payment instruments that are separate from the contract of sale between the applicant
16 pages (4000 words) Essay
Best Trust Bank Case
He often tried to understand the unspoken needs of the customers that the bank could comfortably meet. In case the customers got upset about the services offered or any other issue in the bank, initially he
3 pages (750 words) Essay
Syrian & Libyan Revolution (Case Study)
However, there are cases where the citizens feel that they are not being governed fairly and justly. When this happens, citizens may start calling for changes in the governance system of their respective countries from the current form of governance to the
6 pages (1500 words) Essay
Biological Resources
Biological resources are vast and encompass various aspects of nature. Some however can be hazardous for example during tsunamis where oceans flood human settlements.
1 pages (250 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic The case of Libyan Arab Foreign Bank v Bankers Trust Co [1989] QB 728 for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us