Mond v Hyde & Anor [1998] EWCA Civ 1226 (16 July 1998)

Mond v Hyde & Anor [1998] EWCA Civ 1226 (16 July 1998)

The Official Receiver, as an officer of the court, is immune from suit for statements made in the course of bankruptcy proceedings, including those made to a trustee in bankruptcy, whether or not the statements are alleged to be negligent. This immunity is grounded in public policy to ensure frankness and the proper administration of justice. The Department of Trade and Industry is not vicariously liable for such statements. The appellant's claim discloses no cause of action and is struck out.

Citation
[1998] EWCA Civ 1226
Parties
Plaintiff/appellant: Mond; Defendant/respondent: Hyde; Defendant/respondent: Department of Trade and Industry
Jurisdiction
England and Wales
Judgment Date
16 July 1998
Procedural Posture
Civil Appeal / Appeal From High Court Decision to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Official Receiver Immunity, Negligent Misstatement, Vicarious Liability, Bankruptcy Proceedings, Public Policy Immunity
Bankruptcy Tort Law Public Law Official Receiver Immunity Negligent Misstatement Vicarious Liability Bankruptcy Proceedings Public Policy Immunity

Case Brief

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Parties

Mond

Plaintiff/appellant

Hyde

Defendant/respondent

Department of Trade and Industry

Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court Decision to Court of Appeal

Legal Issues

  1. 1 Whether an Official Receiver in Bankruptcy is immune from an action for damages for negligent misstatement made to a trustee in bankruptcy.
  2. 2 Whether the Department of Trade and Industry is vicariously liable for statements made by the Official Receiver.
  3. 3 Whether the statements made by the Official Receiver were negligent and caused loss to the appellant.

Ratio Decidendi

The Official Receiver, as an officer of the court, is immune from suit for statements made in the course of bankruptcy proceedings, including those made to a trustee in bankruptcy, whether or not the statements are alleged to be negligent. This immunity is grounded in public policy to ensure frankness and the proper administration of justice. The Department of Trade and Industry is not vicariously liable for such statements. The appellant's claim discloses no cause of action and is struck out.

Court Disposition

Appeal dismissed

Orders

  • Appeal dismissed with costs
  • Leave to appeal to the House of Lords refused