Case details

Lowick Rose LLP (Appellant) (in Liquidation) v Swynson Limited and another (Respondents)

Case ID: UKSC 2015/0170

Case summary

Issue

Whether the Court of Appeal erred in law in holding that a lender could recover damages from its negligent adviser representing loans that had been repaid by the borrower, on the basis that the borrower's repayments were collateral to (or res inter alios acta) the adviser's breach of contract.

Facts

Swynson Limited is a company ultimately owned by Mr Hunt. In 2006, Swnyson made a substantial loan to a company, EMSL, in order to facilitate a management buy-out. Swynson made this loan in reliance on negligent advice from the appellant firm. EMSL's business did not perform as expected, however, and Swynson was forced to make two further loans to EMSL in 2007 and 2008. Mr Hunt also became EMSL's ultimate majority shareholder.

In 2008, a refinancing was carried out in order to reduce EMSL's liability to Swnyson. This involved Mr Hunt making a substantial loan to EMSL, which EMSL used to pay-off two of its loans from Swynson in full. When EMSL's business was ultimately wound up, Mr Hunt did not recover any of his loan to EMSL, and Swnyson did not recover any of its one outstanding loan. Swnyson and Mr Hunt claimed in negligence against the appellant for damages representing the full amount of Swynson's three loans to EMSL.

Judgment appealed

[2015] EWCA Civ 629

Parties

Appellant

Lowick Rose LLP (in Liquidation)

Respondents
  1. Swynson Limited
  2. Michael Hunt

Appeal

Justices

Lord Neuberger, Lord Mance, Lord Clarke, Lord Sumption, Lord Hodge

Hearing start date

21 Nov 2016

Hearing finish date

24 Nov 2016

Watch hearing
21 Nov 2016 Morning session Afternoon session
22 Nov 2016 Morning session Afternoon session
23 Nov 2016 Morning session Afternoon session
24 Nov 2016 Morning session