Rocker v Full Circle Asset Management [2017] EWHC 2999 (QB) (23 November 2017)

Rocker v Full Circle Asset Management [2017] EWHC 2999 (QB) (23 November 2017)

The court found that FCAM breached its contractual and statutory duties by failing to keep the IC Portfolio within the agreed risk profile for prolonged periods and by not operating the stop loss policy as represented. The breaches caused Mr Rocker quantifiable losses. The court rejected FCAM's argument that the risk profile was 'medium but flexible' and found the stop loss representations were contractually binding. The opportunity loss claim was not upheld in full, but direct losses from breach of mandate and stop loss failures were awarded.

Citation
[2017] EWHC 2999
Parties
Claimant: David Rocker; Defendant: Full Circle Asset Management
Jurisdiction
England and Wales
Judgment Date
23 November 2017
Procedural Posture
Civil Breach of Contract/negligence/statutory Duty / High Court Trial Judgment
Outcome
Judgment for the claimant in part
Legal Topics
Breach of Contract, Breach of Statutory Duty, Negligence, Investment Management, Risk Mandate, Stop Loss Policy, Opportunity Loss, Financial Conduct Authority (fca) Rules, COBS Compliance
Contract Law Financial Services Regulation Tort Law Breach of Contract Breach of Statutory Duty Negligence Investment Management Risk Mandate +4 more

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Parties

David Rocker

Claimant

Full Circle Asset Management

Defendant

Procedural Posture

Civil Breach of Contract/negligence/statutory Duty / High Court Trial Judgment

Legal Issues

  1. 1 What were the contractual terms and risk mandates under the 2009 IC Agreement?
  2. 2 Did FCAM breach its contractual, statutory, or common law duties in managing the IC Portfolio?
  3. 3 Was there a breach of the stop loss policy?

Ratio Decidendi

The court found that FCAM breached its contractual and statutory duties by failing to keep the IC Portfolio within the agreed risk profile for prolonged periods and by not operating the stop loss policy as represented. The breaches caused Mr Rocker quantifiable losses. The court rejected FCAM's argument that the risk profile was 'medium but flexible' and found the stop loss representations were contractually binding. The opportunity loss claim was not upheld in full, but direct losses from breach of mandate and stop loss failures were awarded.

Court Disposition

Judgment for the claimant in part

Orders

  • FCAM to pay damages to Mr Rocker for losses caused by breach of risk mandate and stop loss policy.
  • Claim for full opportunity loss dismissed.