Vicarious Libaility - Frederick v Positive Solutions

Case Alert - [2018] EWCA Civ 431

Court of Appeal holds that company was not vicariously liable for agent who was acting "on a frolic of his own"

The appellants were persuaded by an acquaintance to invest in a property development scheme. The money needed for the investment was raised by way of re-mortgaging of the appellants' properties. This was arranged by the acquaintance's business partner ("W"), who was an IFA who had been appointed as the respondent's agent. W submitted the applications for loans through an online portal with a bank, to which he only had access because he was an agent of the respondent.

The appellants argued that the respondent was vicariously liable for W's actions. The Court of Appeal has now held that it was not.