Due Diligence in UK Law

Leading Cases
  • Associated Leisure Ltd (Phonographic Equipment Company Ltd) v Associated Newspapers Ltd
    • Court of Appeal (Civil Division)
    • 28 May 1970

    But when the defendant seeks to plead justification at a late stage, his conduct will be closely enquired into. The Court will expect him to have shown due diligence in making his enquiries and investigations. The Court may well refuse him application if he has been guilty of delay or not made proper enquiries earlier. That case turned on its particular circumstances. That is why it was never reported. It is the case of O'Toole v. Chambers (unreported, 1924. O. No. 1743)

  • Man Nutzfahrzeuge AG and another v Freightliner Ltd and Others
    • Queen's Bench Division (Commercial Court)
    • 28 Oct 2005

    Perhaps the first point to make in relation to the remaining three allegations is that in reality they are all complaints about the conduct of the audit and if well-founded could be the subject of a claim by ERF itself. None of them relates to the services that E&Y (UK) were engaged by Western Star to perform in connection with MN's due diligence exercise. E&Y (UK)'s sole function in that regard was to make working papers and explanations available to Deloitte & Touche.

  • Mobilix Ltd ((in Administration)) v HM Revenue and Customs; Blue Sphere Global Ltd v Same; Calltel Telecom Ltd and Another v Same
    • Court of Appeal (Civil Division)
    • 12 May 2010

    The test in Kittel is simple and should not be over-refined. It embraces not only those who know of the connection but those who “should have known”. If a trader should have known that the only reasonable explanation for the transaction in which he was involved was that it was connected with fraud and if it turns out that the transaction was connected with fraudulent evasion of VAT then he should have known of that fact.

    The ultimate question is not whether the trader exercised due diligence but rather whether he should have known that the only reasonable explanation for the circumstances in which his transaction took place was that it was connected to fraudulent evasion of VAT.

    Even if a trader has asked appropriate questions, he is not entitled to ignore the circumstances in which his transactions take place if the only reasonable explanation for them is that his transactions have been or will be connected to fraud.

  • Riverstone Meat Company Pty. Ltd v Lancashire Shipping Company Ltd
    • Court of Appeal
    • 26 Nov 1959

    An obligation to exercise due deligence is to my mind indistinguishable from an obligation to exercise reasonable care - a concept not unfamilar in English Law, and one to be sharply distinguished from the obligation, to which certain relationships give rise, to see that care is taken.

  • Wilsons and Clyde Coal Company v English
    • House of Lords
    • 19 Jul 1937

    The ship-owner is almost certainly not an expert naval architect, engineer or stevedore. So far as I know it has never been claimed that this obligation is fulfilled by the shipowner taking reasonable care to appoint a competent expert: the shipowner is absolutely held to the fulfilment of the obligation. It is the obligation which is personal to him, and not the performance.

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Legislation
  • Modern Slavery Act 2015
    • UK Non-devolved
    • 1 de Enero de 2015
    ...... . . (b) its policies in relation to slavery and human trafficking;. . . (c) its due diligence processes in relation to slavery and human trafficking in its business and supply chains;. . . (d) the parts of its business and supply chains ......
  • Space Industry Act 2018
    • UK Non-devolved
    • 1 de Enero de 2018
    ...... . (1) It is a defence for a person charged with an offence under a provision of this Act to show that the person exercised all due diligence and took all reasonable precautions to avoid committing the offence. . (2) A person is taken to have shown that the person exercised all due ......
  • Sanctions and Anti-Money Laundering Act 2018
    • UK Non-devolved
    • 1 de Enero de 2018
    ...... new provision about high-risk countries” if they add or remove an entry in a list of countries in relation to which enhanced customer due diligence measures are required to be taken by virtue of— . (a) (a) the Money Laundering Regulations 2017 (  S.I. 2017/692 ), or . (b) (b) regulations ......
  • Food Safety Act 1990
    • UK Non-devolved
    • 1 de Enero de 1990
    ......S-21 . Defence of due diligence. 21 Defence of due diligence. . (1) In any proceedings for an offence under any of the. preceding provisions of this Part (in this section ......
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Books & Journal Articles
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Law Firm Commentaries
  • IP Due Diligence
    • Mondaq UK
  • ESG due diligence
    • JD Supra United Kingdom
    Over the last 18 months, a raft of publicity has propelled environmental, social and governance (ESG) issues to the forefront of corporate thinking. Three sources of pressure are behind this: (1) f...
  • AML and due diligence
    • LexBlog United Kingdom
    A key part of the UK anti-money laundering (AML) regime is customer due diligence (CDD) which comprises checks that firms should apply to new customers whether or not they are high risk. Another im...
  • Data Protection – "Proper due diligence"
    • JD Supra United Kingdom
    The UK's data protection regulator, the ICO, intends to fine Marriott International, Inc £99.2 million. This proposed fine arises from a cyber-incident which affected Starwood hotels from 2014 to 2...
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