Goldstone & Anor v Becque Wayman Investments Ltd & Ors [2012] EWHC 3549 (Ch) (24 October 2012)

Goldstone & Anor v Becque Wayman Investments Ltd & Ors [2012] EWHC 3549 (Ch) (24 October 2012)

The court found that Mr Wayman, acting through ESP, gave advice that implicitly described the investment as low risk, which was negligent given the true high-risk nature of the product. The claimants relied on this advice and would not have invested had the true risk been disclosed. ESP was held to be the contracting party, and both ESP and Becque Wayman were liable for the negligent advice and resulting losses. The claimants were entitled to recover their net losses, additional premiums, and administration fees, less sums recovered and credits due.

Citation
[2012] EWHC 3549 (Ch)
Parties
First Claimant: Michael Hart Goldstone; Second Claimant: Leslie Clarke David Winnard; First Defendant: Becque Wayman Investments Limited; Second Defendant: Endowment Surrender Plus; Third Defendant: Mark Wayman
Jurisdiction
England and Wales
Judgment Date
24 October 2012
Procedural Posture
Civil Claim (professional Negligence, Financial Services) / High Court Trial Judgment
Outcome
Claim allowed (judgment for claimants)
Legal Topics
Appointed Representative Liability, Negligent Financial Advice, Agency and Principal Liability, Misrepresentation of Investment Risk, Damages for Negligent Advice
Financial Services Law Contract Law Tort Law (negligence) Appointed Representative Liability Negligent Financial Advice Agency and Principal Liability Misrepresentation of Investment Risk Damages for Negligent Advice

Case Brief

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Parties

Michael Hart Goldstone

First Claimant

Leslie Clarke David Winnard

Second Claimant

Becque Wayman Investments Limited

First Defendant

Endowment Surrender Plus

Second Defendant

Mark Wayman

Third Defendant

Procedural Posture

Civil Claim (professional Negligence, Financial Services) / High Court Trial Judgment

Legal Issues

  1. 1 Whether Endowment Surrender Plus (ESP) and/or Becque Wayman Investments Limited are liable for negligent financial advice resulting in loss to the claimants
  2. 2 Whether ESP was a contracting party or acted solely as agent for Becque Wayman
  3. 3 Whether the advice given was negligent and/or in breach of contract

Ratio Decidendi

The court found that Mr Wayman, acting through ESP, gave advice that implicitly described the investment as low risk, which was negligent given the true high-risk nature of the product. The claimants relied on this advice and would not have invested had the true risk been disclosed. ESP was held to be the contracting party, and both ESP and Becque Wayman were liable for the negligent advice and resulting losses. The claimants were entitled to recover their net losses, additional premiums, and administration fees, less sums recovered and credits due.

Court Disposition

Claim allowed (judgment for claimants)

Orders

  • Defendants to pay claimants £431,260 (net loss including premiums and fees, less credits)
  • Interest to be paid on the judgment sum