Anderson & Ors v Sense Network Ltd [2018] EWHC 2834 (Comm) (26 October 2018)

Anderson & Ors v Sense Network Ltd [2018] EWHC 2834 (Comm) (26 October 2018)

Sense Network Limited is not liable under FSMA s.39 or vicarious liability for losses caused by MFSS's fraudulent scheme, as MFSS acted outside its authority and concealed the scheme from Sense. Sense fulfilled its regulatory and contractual supervisory duties, and no knowledge or fault is attributable to Sense's management. Claims based on apparent authority fail for lack of claimant reliance. Breach of supervisory duty and failure to investigate are not established on the evidence.

Citation
[2018] EWHC 2834 (Comm)
Parties
Claimants: Adam Anderson and others; Defendant: Sense Network Limited
Jurisdiction
England and Wales
Judgment Date
26 October 2018
Procedural Posture
Commercial Court Claim / Final Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Appointed Representative Liability, Ponzi Scheme, FSMA S.39, Vicarious Liability, Breach of Supervisory Duty, Contributory Negligence
Financial Services Law Contract Law Tort Law Appointed Representative Liability Ponzi Scheme FSMA S.39 Vicarious Liability Breach of Supervisory Duty +1 more

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Parties

Adam Anderson and others

Claimants

Sense Network Limited

Defendant

Procedural Posture

Commercial Court Claim / Final Judgment After Trial

Legal Issues

  1. 1 Is Sense Network Limited liable for losses suffered by claimants due to MFSS's fraudulent Ponzi scheme?
  2. 2 Does FSMA s.39 impose liability on Sense for MFSS's actions?
  3. 3 Did MFSS act with actual or apparent authority from Sense?

Ratio Decidendi

Sense Network Limited is not liable under FSMA s.39 or vicarious liability for losses caused by MFSS's fraudulent scheme, as MFSS acted outside its authority and concealed the scheme from Sense. Sense fulfilled its regulatory and contractual supervisory duties, and no knowledge or fault is attributable to Sense's management. Claims based on apparent authority fail for lack of claimant reliance. Breach of supervisory duty and failure to investigate are not established on the evidence.

Court Disposition

Claim dismissed

Orders

  • All claims against Sense Network Limited are dismissed.
  • No order as to costs pending further submissions.