Lipkin Gorman v Karpnale Ltd
| Lipkin Gorman v Karpnale Ltd | |
|---|---|
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| Court | House of Lords |
| Full case name | Lipkin Gorman (a firm) v (1) Karpnale Ltd, and (2) Lloyds Bank plc |
| Decided | June 6, 1991 |
| Citation(s) | [1988] UKHL 12, [1991] 2 AC 548; [1992] 4 All ER 331; [1991] 3 WLR 10; [1988] UKHL 12 |
| Transcript(s) | Full text from Bailii |
| Case history | |
| Prior action(s) | [1989] 1 WLR 1340 (CA) [1987] 1 WLR 987 (High Court) |
| Court membership | |
| Judge(s) sitting | Lord Bridge of Harwich, Lord Templeman, Lord Griffiths, Lord Ackner and Lord Goff of Chieveley |
| Keywords | |
| Unjust enrichment, change of position | |
Lipkin Gorman v Karpnale Ltd [1988] UKHL 12 (6 June 1991) is a foundational English unjust enrichment case. The House of Lords unanimously established that the basis of an action for money had and received is the principle of unjust enrichment, and that an award of restitution is subject to a defence of change of position. This secured unjust enrichment English law as the third pillar of the law of obligations, along with contract and tort. It has been called a landmark decision.
Although the case is most famous for the transformative judgment handed down by the House of Lords in relation to restitution and unjust enrichment, the decision of the Court of Appeal also set out key principles relating to the duty of care owed by bankers to their customers. There was no appeal against that part of the decision.
Norman Barry Cass was a partner in a solicitors' firm called Lipkin Gorman. He was an authorised signatory at the firm’s Lloyds Bank account. He took out £220,000 and used it for gambling at the Playboy Club, 45 Park Lane, London which was owned by Karpnale Ltd. Between March and November 1980, the club won £154,695 of the stolen money (the rest paid back to Mr Cass in ‘winnings’). Mr Cass fled to Israel, but was brought back and sentenced to three years prison for theft in 1984. Lipkin Gorman sued the club for return of the stolen money. At the time, gambling contracts were contrary to public policy, and therefore void under the Gaming Act 1845 section 18.
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