Emptage v Financial Services Compensation Scheme Ltd [2012] EWHC 2708 (Admin) (11 October 2012)

Emptage v Financial Services Compensation Scheme Ltd [2012] EWHC 2708 (Admin) (11 October 2012)

FSCS erred in law and acted irrationally by failing to compensate Ms Emptage for the unaffordable mortgage liability resulting from negligent mortgage advice, mischaracterising the claim as involving unprotected investment losses, and not restoring her to the financial position she would have been in absent the breach.

Citation
[2012] EWHC 2708 (Admin)
Parties
Claimant: Charmaine Emptage; Defendant: Financial Services Compensation Scheme Limited
Jurisdiction
England and Wales
Judgment Date
11 October 2012
Procedural Posture
Judicial Review / High Court Judgment
Outcome
Decision of FSCS quashed; matter remitted for reconsideration.
Legal Topics
Compensation Scheme, Negligent Mortgage Advice, Regulated Activities, Consumer Protection, Judicial Review
Financial Services Law Administrative Law Tort Law Compensation Scheme Negligent Mortgage Advice Regulated Activities Consumer Protection Judicial Review

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

Charmaine Emptage

Claimant

Financial Services Compensation Scheme Limited

Defendant

Procedural Posture

Judicial Review / High Court Judgment

Legal Issues

  1. 1 Whether FSCS correctly assessed 'fair compensation' for negligent mortgage advice under the Scheme
  2. 2 Whether FSCS misdirected itself by excluding losses arising from unaffordable mortgage liability
  3. 3 Whether FSCS acted irrationally in limiting compensation to £11,522.98

Ratio Decidendi

FSCS erred in law and acted irrationally by failing to compensate Ms Emptage for the unaffordable mortgage liability resulting from negligent mortgage advice, mischaracterising the claim as involving unprotected investment losses, and not restoring her to the financial position she would have been in absent the breach.

Court Disposition

Decision of FSCS quashed; matter remitted for reconsideration.

Orders

  • The FSCS decision awarding only £11,522.98 is quashed.
  • FSCS is ordered to reconsider the compensation payable to Ms Emptage in accordance with the judgment.