December 20, 2025
Kleinwort Benson v Lincoln City Council [1998] UKHL 38
Kleinwort Benson bank made payments to local authorities under interest rate swap contracts later held void in the Hazell case. The bank sought recovery of payments made under mistake of law. The House of Lords abolished the long-standing rule barring recovery of money paid under a mistake of law, establishing that such payments are recoverable in restitution. Facts Kleinwort Benson Ltd, a merchant bank, entered into interest rate swap contracts with several local authorities including Lincoln City Council, Southwark, Birmingham, and Kensington and Chelsea. Following the House of Lords decision in Hazell v Hammersmith and Fulham London Borough Council [1992]
