Proving Banks Debts: Clarity At Last

The Supreme Court judgments in Ulster Bank Ireland Limited v O'Brien (16 December 2015) bring long overdue common sense to the law relating to proof of bank debts. Until now there had been several High Court decisions which introduced undue complexity to the process. These decisions held that unless the plaintiff bank could show that it had complied with the Bankers' Books Evidence Act 1879 (as amended) (the "BBEA") its evidence would be hearsay. O'Brien establishes that focusing on BBEA procedures is inappropriate and unfair. Inappropriate, because a bank does not necessarily need to rely on "bankers' books" in order to prove a contract of loan, a breach by the borrower and the amount due. Unfair, because those decisions seem to preclude a bank proving its case in the same way as any other commercial creditor.