Bank of Ireland & Anor v Watts Group Plc

Bank of Ireland & Anor v Watts Group Plc

The Bank failed to prove Watts was negligent in preparing the IAR. Even if negligence were established, causation was not proven: the Bank would have proceeded with the loan regardless. Further, the losses claimed were not recoverable in law from Watts under the SAAMCO principle, and the true cause of loss was the Bank's own lending failures.

Parties
Claimant: The Governors and Company of the Bank of Ireland; Claimant: Bank of Ireland (UK) PLC; Defendant: Watts Group PLC
Jurisdiction
England and Wales
Judgment Date
12 July 2017
Procedural Posture
Civil (professional Negligence) / Judgment After Trial
Outcome
Claim dismissed
Legal Topics
Duty of Care, Causation, Damages, Contributory Negligence, Scope of Duty (saamco)
Professional Negligence Banking Law Construction Law Duty of Care Causation Damages Contributory Negligence Scope of Duty (saamco)

Case Brief

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Parties

The Governors and Company of the Bank of Ireland

Claimant

Bank of Ireland (UK) PLC

Claimant

Watts Group PLC

Defendant

Procedural Posture

Civil (professional Negligence) / Judgment After Trial

Legal Issues

  1. 1 Whether Watts Group PLC was negligent in preparing the Initial Appraisal Report (IAR) for the Bank of Ireland.
  2. 2 Whether any alleged negligence caused the Bank's loss.
  3. 3 Whether the losses claimed are recoverable in law from Watts under the SAAMCO principle.

Ratio Decidendi

The Bank failed to prove Watts was negligent in preparing the IAR. Even if negligence were established, causation was not proven: the Bank would have proceeded with the loan regardless. Further, the losses claimed were not recoverable in law from Watts under the SAAMCO principle, and the true cause of loss was the Bank's own lending failures.

Court Disposition

Claim dismissed

Orders

  • The Bank's claim against Watts Group PLC is dismissed.