, LML4807
ASSIGNMENT 1 SEMESTER 2
2026
DUE 1 SEPTEMBER 2026
a) Advice to Fikile: Whether Nedstar Bank Breached its Duty of Confidentiality
Yes, Nedstar Bank, through its consultant Palesa, has almost certainly breached its duty of
confidentiality owed to you, Fikile Mokoena. This conclusion is firmly supported by the
common-law principles established in the leading case of Tournier v National Provincial and Union
Bank of England [1924] 1 KB 461, which forms the bedrock of a bank's duty of confidentiality
towards its customers.
The Common-Law Duty
The duty of confidentiality is an implied term of the contract between a bank and its customer
(Tournier v National Provincial and Union Bank of England [1924] 1 KB 461 at 473). This duty
requires a bank to keep all information concerning the customer's account and affairs confidential.
The duty is broad in scope, encompassing all information obtained by the bank in its capacity as a
banker, including the customer's identity, account balances, and transaction history (Tournier at
486).
The Qualifications in Tournier
However, as established in Tournier, this duty is not absolute. The court identified four specific
qualifications or exceptions where a bank may be permitted to disclose confidential information.
These are:
Disclosure under compulsion of law: Where a bank is legally obliged to disclose, for example, by
a court order or under a statutory provision (Tournier at 473).
Disclosure where there is a duty to the public: Where disclosure is required in the public
interest, such as to prevent a crime or protect public safety (Tournier at 473–474).
Disclosure where the interests of the bank require it: For instance, when the bank needs to
disclose information to recover a debt owed to it by the customer (Tournier at 475).
Disclosure made with the express or implied consent of the customer: Where the customer
gives their permission for the bank to release the information (Tournier at 474).
ASSIGNMENT 1 SEMESTER 2
2026
DUE 1 SEPTEMBER 2026
a) Advice to Fikile: Whether Nedstar Bank Breached its Duty of Confidentiality
Yes, Nedstar Bank, through its consultant Palesa, has almost certainly breached its duty of
confidentiality owed to you, Fikile Mokoena. This conclusion is firmly supported by the
common-law principles established in the leading case of Tournier v National Provincial and Union
Bank of England [1924] 1 KB 461, which forms the bedrock of a bank's duty of confidentiality
towards its customers.
The Common-Law Duty
The duty of confidentiality is an implied term of the contract between a bank and its customer
(Tournier v National Provincial and Union Bank of England [1924] 1 KB 461 at 473). This duty
requires a bank to keep all information concerning the customer's account and affairs confidential.
The duty is broad in scope, encompassing all information obtained by the bank in its capacity as a
banker, including the customer's identity, account balances, and transaction history (Tournier at
486).
The Qualifications in Tournier
However, as established in Tournier, this duty is not absolute. The court identified four specific
qualifications or exceptions where a bank may be permitted to disclose confidential information.
These are:
Disclosure under compulsion of law: Where a bank is legally obliged to disclose, for example, by
a court order or under a statutory provision (Tournier at 473).
Disclosure where there is a duty to the public: Where disclosure is required in the public
interest, such as to prevent a crime or protect public safety (Tournier at 473–474).
Disclosure where the interests of the bank require it: For instance, when the bank needs to
disclose information to recover a debt owed to it by the customer (Tournier at 475).
Disclosure made with the express or implied consent of the customer: Where the customer
gives their permission for the bank to release the information (Tournier at 474).
