Frederick and others (Appellants) v Positive Solutions (Financial Services) Ltd (Respondent)
Case ID: UKSC 2018/0067
Case summary
Issue(s)
Whether the Respondent is vicariously liable for the fraudulent and dishonest actions of its agent.
Facts
The Appellants appeal against a decision granting summary judgment to the Respondent, a company providing financial advice, in their claim alleging that the company was liable in negligence following a fraud perpetrated by its agent, Luke Warren.
The Appellants had been introduced to a property development scheme run by Warren and his business partner, Qureshi. Warren was an agent of the Respondent. Warren explained that the monies for the investment could be raised by way of remortgage of the Appellants’ properties, which Warren could arrange. Because he was an agent of the company, Warren had access to an online portal operated by a bank. He used the portal to arrange the remortgages. He put forward false income and employment information, thus obtaining borrowing which could not otherwise have been advanced. Some of the monies were used to pay off the Appellants' existing mortgages; the balance was advanced to the Warren, who misappropriated, and lost it in the development scheme. The Appellants argued that the Respondent company was legally responsible for the actions of Warren. A Master granted the Respondent summary judgment on most bases but refused it in respect of its alleged vicarious liability for the Warren’s wrongdoing. The Respondent successfully appealed that decision in the High Court. This decision was upheld by the Court of Appeal which the Appellants now appeal.
Judgment appealed
Parties
Appellant(s)
- Donald Frederick
- Phyliss Frederick
- Janine Frederick
- Shanay Raymond
Respondent(s)
Positive Solutions (Financial Services) Ltd
Appeal
Justices
Lady Hale, Lady Reed, Lord Kerr, Lord Wilson, Lord Lloyd-Jones, Lady Arden, Lord Sales
Hearing start date
13 Feb 2019
Hearing finish date
14 Feb 2019