Thomas & Anor v Triodos Bank NV

Thomas & Anor v Triodos Bank NV

The bank owed the claimants an information duty, arising from its subscription to the Business Banking Code, to provide a clear and balanced explanation of the financial implications of fixing interest rates, including redemption penalties. The bank breached this duty by failing to disabuse the claimants of their...

Source-derived case information.

Parties
Claimant: Philip Thomas; Claimant: Helen Thomas; Defendant: Triodos Bank NV
Jurisdiction
England and Wales
Judgment Date
02 March 2017
Procedural Posture
Civil / Judgment
Outcome
Judgment for claimants on liability for misrepresentation and breach of information duty; quantum reserved for further submissions.
Legal Topics
Misrepresentation, Duty of Care, Fixed Rate Loans, Information Duty, Breach of Duty, Damages, Quantum, Business Banking Code
Banking Law Contract Law Tort Law Misrepresentation Duty of Care Fixed Rate Loans Information Duty Breach of Duty +3 more

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Summary, issues, holding and outcome

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Parties

Philip Thomas

Claimant

Helen Thomas

Claimant

Triodos Bank NV

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Extent of bank's duty of care to retail customers for commercial borrowing facilities
  2. 2 Whether misrepresentations were made regarding redemption penalties
  3. 3 Whether bank breached information duty under Business Banking Code

Ratio Decidendi

The bank owed the claimants an information duty, arising from its subscription to the Business Banking Code, to provide a clear and balanced explanation of the financial implications of fixing interest rates, including redemption penalties. The bank breached this duty by failing to disabuse the claimants of their misunderstanding regarding the likely magnitude of redemption penalties, leading to their decision to fix rates for an excessive period and causing financial losses.

Court Disposition

Judgment for claimants on liability for misrepresentation and breach of information duty; quantum reserved for further submissions.

Orders

  • Bank found liable for misrepresentation and breach of information duty.
  • Quantum of damages to be determined after further submissions.