Barclays Bank Plc v Grant Thornton UK LLp

Barclays Bank Plc v Grant Thornton UK LLp

The disclaimer clause in the audit reports was clear, industry standard, and reasonable under the Unfair Contract Terms Act 1977. As between sophisticated commercial parties, it negated any duty of care owed by Grant Thornton to Barclays. There is no realistic prospect of success for Barclays' claim and no compelling reason for trial.

Parties
Claimant: Barclays Bank PLC; Defendant: Grant Thornton UK LLP
Jurisdiction
England and Wales
Judgment Date
18 February 2015
Procedural Posture
Civil / Summary Judgment Application
Outcome
summary judgment granted for defendant
Legal Topics
Auditor Liability, Negligent Misstatement, Disclaimer Clauses, Duty of Care, Unfair Contract Terms Act 1977, Reasonableness Test
Tort Contract Commercial Law Auditor Liability Negligent Misstatement Disclaimer Clauses Duty of Care Unfair Contract Terms Act 1977 +1 more

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Parties

Barclays Bank PLC

Claimant

Grant Thornton UK LLP

Defendant

Procedural Posture

Civil / Summary Judgment Application

Legal Issues

  1. 1 Whether a disclaimer in an auditor's report negates a duty of care to a third party
  2. 2 Whether the Unfair Contract Terms Act 1977 applies to the disclaimer
  3. 3 Whether the disclaimer satisfies the statutory requirement of reasonableness

Ratio Decidendi

The disclaimer clause in the audit reports was clear, industry standard, and reasonable under the Unfair Contract Terms Act 1977. As between sophisticated commercial parties, it negated any duty of care owed by Grant Thornton to Barclays. There is no realistic prospect of success for Barclays' claim and no compelling reason for trial.

Court Disposition

summary judgment granted for defendant

Orders

  • Claim dismissed against Grant Thornton UK LLP
  • Costs to follow the event, subject to further determination if not agreed