Blower & Ors v Edwards & Anor [2010] ScotCS CSOH_34 (12 March 2010)

Blower & Ors v Edwards & Anor [2010] ScotCS CSOH_34 (12 March 2010)

Mr Edwards, as scheme actuary, failed to provide sufficiently impartial, balanced, and detailed advice regarding the switch from the DAC to the MF contract, particularly in relation to the value and importance of the guarantees under the DAC and the detailed analysis of available options. This constituted a breach of his contractual and delictual duties to the trustees. The trustees reasonably relied on his advice in making their decision, and causation is established for liability, with quantification of damages to be determined separately.

Citation
[2010] ScotCS CSOH_34
Parties
Pursuer: Robert Blower and Others, Trustees of the WTL International Limited Retirement Benefits Scheme; Defender: Eric Edwards; Defender: Scottish Widows PLC
Jurisdiction
Scotland
Judgment Date
12 March 2010
Procedural Posture
Civil (damages for Breach of Contract and Negligence) / Proof on Liability and Causation; Quantification of Damages Reserved
Outcome
Liability established against Mr Edwards and Scottish Widows PLC for breach of contract and negligence; quantification of damages reserved for later determination.
Legal Topics
Trustees' Duties, Actuarial Advice, Breach of Contract, Negligence, Minimum Funding Requirement (mfr), Investment Strategy for Pension Schemes, Implied Contractual Terms, Duty of Care
Pensions Law Contract Law Professional Negligence Trustees' Duties Actuarial Advice Breach of Contract Negligence Minimum Funding Requirement (mfr) +3 more

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Parties

Robert Blower and Others, Trustees of the WTL International Limited Retirement Benefits Scheme

Pursuer

Eric Edwards

Defender

Scottish Widows PLC

Defender

Procedural Posture

Civil (damages for Breach of Contract and Negligence) / Proof on Liability and Causation; Quantification of Damages Reserved

Legal Issues

  1. 1 Whether Mr Edwards breached his contractual and delictual duties as scheme actuary by failing to provide impartial, balanced, and sufficiently detailed advice regarding the switch from a deferred annuity contract to a managed fund contract;
  2. 2 Whether the advice given was negligent and/or in breach of contract;
  3. 3 Whether the trustees relied on that advice and suffered loss as a result.

Ratio Decidendi

Mr Edwards, as scheme actuary, failed to provide sufficiently impartial, balanced, and detailed advice regarding the switch from the DAC to the MF contract, particularly in relation to the value and importance of the guarantees under the DAC and the detailed analysis of available options. This constituted a breach of his contractual and delictual duties to the trustees. The trustees reasonably relied on his advice in making their decision, and causation is established for liability, with quantification of damages to be determined separately.

Court Disposition

Liability established against Mr Edwards and Scottish Widows PLC for breach of contract and negligence; quantification of damages reserved for later determination.

Orders

  • Proof on liability and causation granted;
  • All questions of quantification of damages reserved;