Swynson Ltd v Lowick Rose llp (formerly Hurst Morrison Thomson llp)

Subject Matter

NEGLIGENCE — Duty of care to whom — Accountant — First claimant company making substantial loan in reliance on advice and positive due diligence reports received from defendant firm — First claimant indirectly owned by second claimant — Assumption of responsibility — Whether defendant owing duty of care to second claimant

[2014] EWHC 2085 (Ch); [2014] PNLR 27; [2014] CN 1161, Ch D

DAMAGES — Assessment — Avoided loss — Accountants giving negligent advice — Claimant making three substantial loans in reliance on advice — Borrower defaulting — Claimant’s owner subsequently refinancing loan so enabling repayment of first two loans — Whether repayment collateral matter — Whether damages to be reduced to reflect repayment

[2015] EWCA Civ 629; [2016] 1 WLR 1045; [2015] WLR (D) 278, CA

DAMAGES — Assessment — Avoided loss — Accountants giving negligent advice in due diligence report — Lender making three substantial loans in reliance on advice — Borrower defaulting — Lender’s action against accountants for damages for breach of contract — Lender’s owner subsequently giving borrower refinancing loan thus enabling repayment to lender of first two loans — Whether repayment collateral matter — Whether lender suffering loss as result of breach — Whether principle of transferred loss applicable — Whether accountants unjustly enriched giving rise to equitable subrogation — Whether damages to be reduced to reflect repayment

[2017] UKSC 32; [2018] AC 313; [2017] 2 WLR 1161; [2017] 3 All ER 785; [2017] WLR (D) 257; Case details, SC(E)

Appellate History