Riyad Bank & Ors v Ahli United Bank (UK) Plc [2006] EWCA Civ 780 (13 June 2006)

Riyad Bank & Ors v Ahli United Bank (UK) Plc [2006] EWCA Civ 780 (13 June 2006)

UBK owed a duty of care in tort to the Fund because it assumed responsibility for its advice, the Fund relied on UBK's expertise, and the contractual structure did not negate this duty; UBK was negligent in failing to properly evaluate lease values, causing loss to the Fund.

Citation
[2006] EWCA Civ 780
Parties
Claimant/respondent: Riyad Bank; Claimant/respondent: RBE London Ltd; Claimant/respondent: RBE Ijara Fund Plc; Defendant/appellant: Ahli United Bank (UK) Plc (formerly The United Bank of Kuwait Plc)
Jurisdiction
England and Wales
Judgment Date
13 June 2006
Procedural Posture
Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (commercial Court)
Outcome
Appeal dismissed; High Court judgment upheld.
Legal Topics
Duty of Care, Negligent Advice, Concurrent Liability, Assumption of Responsibility, Economic Loss, Islamic Finance, Valuation of Assets
Commercial Law Tort Law Contract Law Banking and Finance Duty of Care Negligent Advice Concurrent Liability Assumption of Responsibility +3 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 9 Party arguments 2 Amounts and remedies 4
Sign in to unlock

Parties

Riyad Bank

Claimant/respondent

RBE London Ltd

Claimant/respondent

RBE Ijara Fund Plc

Claimant/respondent

Ahli United Bank (UK) Plc (formerly The United Bank of Kuwait Plc)

Defendant/appellant

Procedural Posture

Appeal (civil) / Court of Appeal Judgment on Appeal From High Court (commercial Court)

Legal Issues

  1. 1 Whether UBK owed a duty of care in tort to the Fund despite the contractual structure
  2. 2 Whether the contractual chain precluded a tortious duty of care
  3. 3 Basis for assessing negligent valuation of leases

Ratio Decidendi

UBK owed a duty of care in tort to the Fund because it assumed responsibility for its advice, the Fund relied on UBK's expertise, and the contractual structure did not negate this duty; UBK was negligent in failing to properly evaluate lease values, causing loss to the Fund.

Court Disposition

Appeal dismissed; High Court judgment upheld.

Orders

  • UBK held liable in tort to the Fund for negligent advice on lease valuations.
  • Damages to be assessed in accordance with the High Court's guidance.