PEEBLES MEDIA GROUP LTD AGAINST PATRICIA REILLY [2019] ScotCS CSOH_89 (15 November 2019)

PEEBLES MEDIA GROUP LTD AGAINST PATRICIA REILLY [2019] ScotCS CSOH_89 (15 November 2019)

The defender was not in breach of her implied contractual duty of reasonable skill and care in making the fraudulent payments, as she acted with the apparent authority of her superiors, was not adequately trained or equipped to detect such fraud, and followed the lead of her line manager. The only breach identified was the unilateral transfer of funds between accounts, but the loss resulting from this was not a natural or foreseeable consequence of the breach and was therefore too remote to be recoverable.

Citation
[2019] ScotCS CSOH_89
Parties
Pursuer: Peebles Media Group Ltd; Defender: Patricia Reilly
Jurisdiction
Scotland
Judgment Date
15 November 2019
Procedural Posture
Civil / First Instance
Outcome
action dismissed
Legal Topics
Implied Contractual Duties, Employee Negligence, Fraud Liability, Remoteness of Damage, Causation
Employment Law Contract Law Implied Contractual Duties Employee Negligence Fraud Liability Remoteness of Damage Causation

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Parties

Peebles Media Group Ltd

Pursuer

Patricia Reilly

Defender

Procedural Posture

Civil / First Instance

Legal Issues

  1. 1 Whether the defender breached her implied contractual duty of reasonable skill and care in making payments following fraudulent instructions
  2. 2 Whether the loss suffered by the pursuers was caused by any breach of duty by the defender
  3. 3 Whether the loss was too remote to be recoverable

Ratio Decidendi

The defender was not in breach of her implied contractual duty of reasonable skill and care in making the fraudulent payments, as she acted with the apparent authority of her superiors, was not adequately trained or equipped to detect such fraud, and followed the lead of her line manager. The only breach identified was the unilateral transfer of funds between accounts, but the loss resulting from this was not a natural or foreseeable consequence of the breach and was therefore too remote to be recoverable.

Court Disposition

action dismissed