RECLAIMING MOTION BY PEEBLES MEDIA GROUP LTD AGAINST PATRICIA REILLY [2021] ScotCS CSIH_23 (12 March 2021)

RECLAIMING MOTION BY PEEBLES MEDIA GROUP LTD AGAINST PATRICIA REILLY [2021] ScotCS CSIH_23 (12 March 2021)

The Lord Ordinary was entitled, on the facts, to find that the defender did not breach her implied contractual duty of reasonable skill and care in making the payments, as she genuinely believed she was acting on instructions from her managing director and followed her superior's lead. There was insufficient evidence that she should have been alerted to the fraud. The losses were not caused by any breach regarding the internal transfer of funds, and no case was made out on that ground.

Citation
[2021] ScotCS CSIH_23
Parties
Pursuer and Reclaimer: Peebles Media Group Limited; Defender and Respondent: Patricia Reilly
Jurisdiction
Scotland
Judgment Date
12 March 2021
Procedural Posture
Reclaiming Motion (appeal) in Civil Action for Damages (negligence) / Appeal Judgment (inner House, Court of Session)
Outcome
Reclaiming motion refused; Lord Ordinary's decision affirmed.
Legal Topics
Employee Negligence, Implied Contractual Duties, Remoteness of Damage, Causation, Fraud (whaling Fraud), Employer's Vicarious Liability, Standard of Care in Employment
Employment Law Contract Law Tort/delict Banking and Finance Employee Negligence Implied Contractual Duties Remoteness of Damage Causation +3 more

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Parties

Peebles Media Group Limited

Pursuer and Reclaimer

Patricia Reilly

Defender and Respondent

Procedural Posture

Reclaiming Motion (appeal) in Civil Action for Damages (negligence) / Appeal Judgment (inner House, Court of Session)

Legal Issues

  1. 1 Whether the defender (employee) was negligent in making payments to fraudsters based on fraudulent emails
  2. 2 Whether the defender breached her implied contractual duty to exercise reasonable skill and care
  3. 3 Whether losses suffered by the employer were too remote to be recoverable from the employee

Ratio Decidendi

The Lord Ordinary was entitled, on the facts, to find that the defender did not breach her implied contractual duty of reasonable skill and care in making the payments, as she genuinely believed she was acting on instructions from her managing director and followed her superior's lead. There was insufficient evidence that she should have been alerted to the fraud. The losses were not caused by any breach regarding the internal transfer of funds, and no case was made out on that ground.

Court Disposition

Reclaiming motion refused; Lord Ordinary's decision affirmed.

Orders

  • The appeal is refused.
  • The Lord Ordinary's interlocutor of 15 November 2019 is adhered to.