Slattery v Moore Stephens (a firm) [2003] EWHC 1869 (Ch) (31 July 2003)

Slattery v Moore Stephens (a firm) [2003] EWHC 1869 (Ch) (31 July 2003)

Moore Stephens breached their duty by failing to advise Mr. Slattery, a resident but not ordinarily resident, to have his salary paid offshore, which would have enabled significant tax savings. The breach caused loss for 1996/97 and 1997/98, but not for 1995/96. Mr. Slattery was contributorily negligent for 1997/98...

Source-derived case information.

Citation
[2003] EWHC 1869 (Ch)
Parties
Claimant: Michael Slattery; Defendant: Moore Stephens
Jurisdiction
England and Wales
Judgment Date
31 July 2003
Procedural Posture
Professional Negligence Claim / Final Judgment
Outcome
Claim partly allowed
Legal Topics
Accountant's Duty of Care, Tax Advice for Non Domiciled Residents, Contributory Negligence, Damages Assessment
Professional Negligence Tax Law Accountant's Duty of Care Tax Advice for Non Domiciled Residents Contributory Negligence Damages Assessment

Source-derived case record

Summary, issues, holding and outcome

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Parties

Michael Slattery

Claimant

Moore Stephens

Defendant

Procedural Posture

Professional Negligence Claim / Final Judgment

Legal Issues

  1. 1 Whether Moore Stephens breached their duty by failing to advise Mr. Slattery to have his salary paid offshore
  2. 2 Whether Mr. Durman advised Mr. Slattery about offshore payment in October 1996
  3. 3 Causation of loss for each tax year

Ratio Decidendi

Moore Stephens breached their duty by failing to advise Mr. Slattery, a resident but not ordinarily resident, to have his salary paid offshore, which would have enabled significant tax savings. The breach caused loss for 1996/97 and 1997/98, but not for 1995/96. Mr. Slattery was contributorily negligent for 1997/98 by failing to query a large tax refund, warranting a 50% reduction in damages for that year.

Court Disposition

Claim partly allowed

Orders

  • Moore Stephens to pay Mr. Slattery £197,092.48 in damages for 1996/97 and 1997/98 tax years, reflecting contributory negligence for 1997/98.