Accountants Lowick Rose LLP has failed in a Court of Appeal challenge to a ruling that leaves the firm, in liquidation, liable to pay £15m in damages for negligence
The Court of Appeal has rejected the firm’s case by a two to one majority in a judgment released on 25 June [Swynson Ltd v Lowick Rose LLP (in liquidation) (formerly Hurst Morrison Thomson LLP) [2015] EWCA Civ 629; [2015] WLR (D) 278]. As a result, the firm - which is in liquidation - is liable to pay that sum to lender Swynson, despite the fact it was repaid much of the money loaned in reliance on the accountants’ advice.
In his Appeal Court judgment, Lord Justice Longmore said: ‘This appeal concerns the amount of damages recoverable by a lender from a negligent firm of accountants who failed to do a proper exercise of due diligence on the borrower to whom the money was lent.
‘The majority of the loan was repaid by utilising money lent to the borrower by the owner of the lending company.’
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