The Court of Appeal yesterday confirmed a judgment of the First Hall of the Civil Court in respect of a bank account held in the joint names of John Patrick Hayman (deceased) and Edmond Mugliett. The court heard that the heirs of the late Dr Hayman had filed a writ of summons against Mr Mugliett claiming that Dr Hayman and Mr Mugliett held a joint savings account. On the day following Dr Hayman's death, Mr Mugliett had withdrawn €94,365 (Lm40,500) from the account.

The heirs had requested the First Hall of the Civil Court to order Mr Mugliett to immediately deposit the sum in the savings account until it could be distributed to those who were entitled to it at law.

The first court had upheld the heirs' request and had ordered Mr Mugliett to refund the sum and deposit it in the joint savings account. Mr Mugliett lodged an appeal to the Court of Appeal composed of Chief Justice Vincent Degaetano, Mr Justice Albert J. Magri and Mr Justice Tonio Mallia.

The court heard that Dr Hayman had died on April 23, 2001 and that on the following day, Mr Mugliett had withdrawn €94,365 (Lm40,500) from the joint savings account leaving a balance of €41.94 (Lm18). The bank was not informed of Dr Hayman's death. The court said that when money was placed in a bank account, the relationship bet-ween client and bank was not that of the legal notion of deposit.

On the contrary, the legal relationship was that the client was lending money to the bank. Once the savings account was a joint one, it was not correct for one of the clients to withdraw money from it without the knowledge of the other party. Any arrangements that might have existed between Dr Hayman and Mr Mugliett prior to Dr Hayman's death came to an end upon the moment of death. Consequently, Mr Mugliett was not entitled at law to withdraw money from the account.

The Court of Appeal declared that it was not concluding that Dr Hayman's heirs were entitled to the money. However, once the account was a joint account, it resulted, on a prima facie basis, that Dr Hayman had an interest in the account. The heirs had a legal interest in this case so that the money in the account could be apportioned among those entitled to it at law, if necessary with the intervention of the courts. The court upheld the first court's judgment and ordered Mr Mugliett to deposit €94,36 (Lm40,500) in the joint savings account.

The court added that the appeal was frivolous and ordered Mr Mugliett to pay double costs.