Habib Bank v Habib Bank AG Zurich [1981] 1 WLR 1265

• Defendant was a bank incorporated in Switzerland, formed out of a former Pakistani bank of the same name.

• Subsequent to this incorporation, Pakistani bank was nationalised. However Claimant, as a nationalised bank, continued trading extensively with Defendant.

• Only 7 years after nationalisation did Claimant bring claim for passing off against Defendant.

Held

• For acquiescence, failure of Claimant to sue Defendant must have encouraged Defendant to believe that the wrong was being assented to

• Here, is hard to think of what more Claimant could have done to give such encouragement than continue trading with Defendant.

• Thus defence of acquiescence applies.