Manchester Building Society v Grant Thornton UK LLP
[2021] UKSC 20
Ratio Decidendi
In professional negligence claims, the scope of the defendant's duty determines the losses for which they are responsible. The court must ask: was the purpose of the duty to protect the claimant against the type of loss that occurred? The 'SAAMCO counterfactual' applies: what would the claimant's position have been if the information/advice had been correct?
Fapte
Grant Thornton negligently advised Manchester Building Society that hedge accounting could be used for lifetime mortgages. When the advice proved wrong, MBS had to close out hedging positions at a loss of over £32 million.
Rezumatul hotărârii
The Supreme Court reformulated the scope of duty analysis in professional negligence, refining Lord Hoffmann's approach in SAAMCO. The key question is whether the loss fell within the scope of the duty of care assumed by the defendant.
Citate cheie
"The scope of the duty of care assumed by a professional adviser is governed by the purpose of the duty, judged on an objective basis by reference to the reason why the advice is being given."
— Lord Hodge and Lord Sales
Tratament ulterior
Now the leading authority on scope of duty in professional negligence, replacing aspects of SAAMCO [1997].