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NEGLIGENCE: Don’t bank on it: borrowers, lenders and the duty of care

22 November 2013  

Alex Fox and Clare Arthurs report on a recent decision clarifying the duties of banks

The Court of Appeal has handed down its first decision arising from the mis-selling of Interest Rate Hedging Products (IRHP), holding that a bank does not owe its customers a common law duty of care to ensure that they understand the nature of the risks involved in signing up to an IRHP. While Green & Rowley v The Royal Bank of Scotland plc [2012] unquestionably sets the bar high for potential claimants, this was very much a case which turned on its facts.

Additional Info

  • Case(s) Referenced:

    Green & anor v The Royal Bank of Scotland plc [2012] EWHC 3661 (QB); [2013] EWCA Civ 1197

    Hedley Byrne & Co Ltd v Heller & Partners Ltd [1964] AC 465

    Shore v Sedgwick Financial Services Ltd [2007] EWHC 2059 (QB)

    X (Minors) v Bedfordshire County Council [1995] 2 AC 633