The insurance market generally is familiar with this decision,
which arises out of a class action by 555 claimants in relation to
failed tax schemes.
Background
The defendants included law firm Collyer-Bristow "CB".
CB had acted for Innovator, the promoter of the schemes.
CB were alleged to have acted in breach of trust, contract and
fiduciary duty, to have been negligent and dishonestly assisted by
distributing monies paid into its client account by the claimants
without authority.
In his lengthy judgment, Mr Justice Hamblen found against the
claimants, holding that as they were never CB's clients, CB
owed them no such duties, nor did CB act dishonestly at any time.
This aspect of the decision (like Arrowhead) underlines
the importance of unequivocal engagement letters, and ensuring that
the parties are clear as to who an appointed firm actually
represents.
