Dismissal of the claim by Zivnostenska Bank against Credit Suisse Bank

Facts

In August 1969, Zivnostenska Bank of Prague requested Credit Suisse Bank (CS) to transfer 2 million DM to the account of Total Aviation Support Ltd. (TAS) in Zug, opened by a certain Neumann. However, TAS denied having received this loan. Zivnostenska therefore requested CS to reimburse the amount. The Commercial Court of the Canton of Zurich dismissed Zivnostenska's claim. Zivnostenska then appealed to the FSCA.

Considerations

The FSCA partially upheld Zivnostenska's appeal. It considered that CS should have verified whether Neumann was authorized to open an account and conclude a giro banking contract on behalf of TAS. By omitting this verification, CS acted negligently, exposing itself to the risk that an unauthorized person could dispose of the amount. CS should have provisionally credited the amount to a "sundry" account pending clarification of Neumann's powers.

Furthermore, Deutsche Bank was able to revoke the transfer order in accordance with Art. 470(2) CO, as long as CS had not informed TAS of the receipt of the amount. The FSCA therefore annulled the…