Court Of Appeal Confirms No Duty Owed By Professional To Non-client Recipient Of Advice

• Published date: 15 May 2023
• Subject Matter: Finance and Banking, Litigation, Mediation & Arbitration, Financial Services, Trials & Appeals & Compensation
• Law Firm: Herbert Smith Freehills
• Author: Herbert Smith Freehills

The Court of Appeal has handed down judgment in David McClean & Ors v Andrew Thornhill KC [2023] EWCA Civ 466, unanimously dismissing the appeal. Herbert Smith Freehills Partner Will Glassey and Associate Henry Saunders acted for the successful Defendant Andrew Thornhill KC.

While not set in a financial services context, the decision will be of interest to in-house lawyers at banks for its analysis of when a professional will owe an advisory duty of care, a common issue which arises in the sector, particularly in mis-selling cases.

The case does not make new law but applies conventional principles, namely that in order for a professional to assume a duty to a non-client recipient of advice, it must have been: (a) reasonable for the recipient to rely on the advice; and (b) reasonably foreseeable to the professional that the recipient would...