Spencer -v- Irish Bank Resolution Corporation Ltd (In Special Liquidation) [2016] IECA 346 (23 November 2016)

Spencer -v- Irish Bank Resolution Corporation Ltd (In Special Liquidation) [2016] IECA 346 (23 November 2016)

The Bank made materially misleading statements in the loose-leaf brochure regarding the Whitgift Foundation's support for development opportunities and failed to disclose material facts (including the mutually exclusive nature of certain development opportunities and the Foundation's actual position). These amounted to negligent misstatements. However, the plaintiff, an experienced solicitor and investor, received further documentation (the Black Book and policy documents) before finalising his investment, which contained clear risk warnings and disclaimed reliance on earlier promotional material. The plaintiff acknowledged and accepted these terms, including a waiver of claims for...

Citation
[2016] IECA 346
Parties
Plaintiff/appellant: John Spencer; First Named Defendant/respondent: Irish Bank Resolution Corporation Limited (in Special Liquidation); Second Named Defendant/respondent: Stapleford Finance Limited
Jurisdiction
Ireland
Judgment Date
23 November 2016
Procedural Posture
Civil Appeal / Appeal From High Court to Court of Appeal
Outcome
Appeal dismissed; judgment for the second defendant on the loan claim.
Legal Topics
Negligent Misstatement, Misrepresentation, Duty of Care, Investment Disputes, Set Off, Breach of Warranty, Breach of Fiduciary Duty
Tort Law Contract Law Banking Law Negligent Misstatement Misrepresentation Duty of Care Investment Disputes Set Off +2 more

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Parties

John Spencer

Plaintiff/appellant

Irish Bank Resolution Corporation Limited (in Special Liquidation)

First Named Defendant/respondent

Stapleford Finance Limited

Second Named Defendant/respondent

Procedural Posture

Civil Appeal / Appeal From High Court to Court of Appeal

Legal Issues

  1. 1 Whether the Bank made negligent misstatements or misrepresentations to the plaintiff regarding investment opportunities and the attitude of the Whitgift Foundation.
  2. 2 Whether the plaintiff relied on such misstatements in making his investment decision.
  3. 3 Whether the Bank owed a duty of care to the plaintiff in the circumstances.

Ratio Decidendi

The Bank made materially misleading statements in the loose-leaf brochure regarding the Whitgift Foundation's support for development opportunities and failed to disclose material facts (including the mutually exclusive nature of certain development opportunities and the Foundation's actual position). These amounted to negligent misstatements. However, the plaintiff, an experienced solicitor and investor, received further documentation (the Black Book and policy documents) before finalising his investment, which contained clear risk warnings and disclaimed reliance on earlier promotional material. The plaintiff acknowledged and accepted these terms, including a waiver of claims for...

Court Disposition

Appeal dismissed; judgment for the second defendant on the loan claim.

Orders

  • Plaintiff's claim for damages dismissed.
  • Second defendant entitled to judgment against the plaintiff pursuant to the loan agreement.