Banking Litigation Podcast Episode 12: SPECIAL EDITION – The Lloyds/HBOS Litigation: the outcome, implications and litigation top tips

In this special edition of our banking litigation podcast, we consider the first judgment in a shareholder class action in England & Wales in Sharp v Blank [2019] EWHC 3078 (Ch) (also known as The Lloyds/HBOS Litigation). Also listen on Apple or Spotify. In rejecting the claim brought by a group of shareholders against Lloyds relating to its acquisition … Read more

Court of Appeal decision in Manchester Building Society v Grant Thornton: clarification of “advice” vs “information” distinction when applying the SAAMCO principle

The Court of Appeal has dismissed the claimant’s appeal in Manchester Building Society v Grant Thornton UK LLP [2019] EWCA Civ 40, an important decision on the application of the decision in South Australia Asset Management Corpn v York Montague Ltd [1997] AC 191 (SAAMCO) to cases involving an adviser’s negligence. The decision will be … Read more

Do we need a new duty of care in financial services?

On 17 July 2018, the FCA published a paper on its Approach to Consumers (the Approach), accompanied by a discussion paper DP18/5 (the DP) on the possible introduction of a new duty of care and other alternative approaches (a New Duty). The Approach sets the FCA’s vision for well-functioning markets that work for consumers, and builds on … Read more

Supreme Court provides clear guidance on liability to third parties for bankers’ references: clarifying the circumstances where banks will be liable for incorrect information

The recent decision of the Supreme Court in NB Banca Nazionale del Lavoro SPA v Playboy Club [2018] UKSC 43 upheld the decision of the Court of Appeal, confirming that where a bank reference is requested on behalf of an undisclosed principal, then no duty of care is owed by the bank providing the reference to the undisclosed … Read more

High Court applies SAAMCO principle to find no assumption of responsibility for losses flowing from market forces

The decision of the High Court in Manchester Building Society v Grant Thornton UK LLP [2018] EWHC 963 (Comm) is a useful illustration of how the scope of an adviser’s duty under the SAAMCO principle can operate to limit liability. In summary, the court held that an auditor’s negligent advice in relation to the accounting treatment of interest rate swaps … Read more