Lester Connock Commemoration Fund v Brough Capital (Pty) Ltd and Another (28646/2020)
Lester Connock Commemoration Fund v Brough Capital (Pty) Ltd and Another (28646/2020) [2023] ZAGPJHC 1329; 2024 (2) SA 486 (GJ) (16 November 2023)
The court found that Brough Capital and Mr Chris Botha, as financial service providers, owed a duty of care to the plaintiff to verify withdrawal instructions and bank account changes, especially in light of the prevalence of business email compromise and the unusual withdrawal patterns. The defendants' reliance on Momentum for verification was rejected, as there was no contractual nexus between the plaintiff and Momentum, and the mandate imposed the duty on the defendants. The indemnity clause did not exempt the defendants from liability for gross negligence, which was established by their f…
Source excerpt
- Business Email Compromise
- Gross Negligence
- Financial Services Provider Duties
- Contractual Indemnity
- Cybercrime Liability
- Fiduciary Duty