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The rule in Clayton’s Case: its application in non-banking relationships

The rule in Clayton’s Case originated in banking relationships and its application is most often seen in that context. Recently there has been a trend to disapply the rule, in cases where multiple claimants seek to trace into a single fund. This article looks at a recent decision of the Court of Appeal which turned on the application of the rule in a non-banking context, and in particular on the timing of the appropriation of payments which is deemed to take place pursuant to the rule.