Byers v Saudi National Bank: circumventing the knowing receipt doctrine

Abstract

This article will map a category of unconscionable transfers that can circumvent the knowing receipt doctrine by design. It exposes and charts these transfers—herein referred to as Samba Transfers—by looking at Byers v Saudi National Bank. While Byers is the model case, Samba Transfers can occur in many situations. The Supreme Court’s decision in Byers has paved the way for this category of unconscionable transfers. This is because the court dealt with the ‘knowing receipt issue’ by resorting to reasons of principle rather than focusing on the defendant’s unconscionable behaviour. This article endorses the Supreme Court’s principled approach. Still, it asks whether Samba Transfers are a cause for concern following Byers. In particular, can the law on dishonest assistance come to the rescue if a recipient of assets has used the judgment in Byers as a blueprint to evade liability in knowing receipt?