- Banks’ have no tortious and vicarious liability for packaged loans in film finance scheme (Barness v Ingenious Media Ltd)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Commercial analysis: Claims against Coutts and NatWest for breach of contract, negligence and vicarious liability were struck out or dismissed as having no prospects of success. The banks had provided loans to investors (professional footballers and others) in Ingenious film finance schemes promoted by an IFA. The loans were packaged with the scheme so that investors were presented with a single investment proposition consisting of the loan and the scheme. The banks agreed to pay the IFA commission for introducing the borrowers. It was alleged that in addition to contractual liability, the banks had assumed responsibility in tort and/or were vicariously liable for the IFA’s breaches either on the principle in Cox v Ministry of Justice or on principles of agency. Written by Richard B Ritchie, barrister, 24 Old Buildings, Lincoln’s Inn.
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