KAUFMANN AND OTHERS V CREDIT LYONNAIS BANK
| DOI | https://doi.org/10.1108/eb024850 |
| Pages | 283-289 |
| Date | 01 March 1995 |
| Published date | 01 March 1995 |
| Author | MRS JUSTICE ARDEN,Joanna Gray |
| Subject Matter | Accounting & finance |
CASE LAW
KAUFMANN AND OTHERS V CREDIT LYONNAIS BANK
(HIGH COURT CHANCERY DIVISION) MRS JUSTICE ARDEN
Date of Judgment: 20th December, 1994
Reported at: 1995
Times Law Reports
Leave to Appeal to CA granted
THE FACTS
Credit Lyonnais (the Defendant),
who at all material times were author-
ised to conduct investment business
by virtue of their membership of the
Securities Association (its functions
now subsumed by SFA) had managed
the Plaintiffs' investments on a dis-
cretionary basis. It was in respect of
the conduct of that discretionary
investment management that the case
arose. The Plaintiffs made allega-
tions,
inter alia, that in 1990 and in
1991 the Defendants had breached
Securities Association (SFA) rules
and/or acted negligently and/or were
in breach of the fiduciary duty owed
to the Plaintiffs, and were thereby
liable in damages to the Plaintiffs
under s. 62 Financial Services Act
1986 (FSA), such liability being
denied by the Defendants.
Among the disputed issues to this
claim was whether or not the Defend-
ants maintained records of tran-
sactions effected on the Plaintiffs'
behalf and also whether they failed to
record the substance of the instruc-
tions given vis-à-vis investment
strategy.
Discovery in this action had yielded
very little in the way of disclosure of
records of the Defendants' discus-
sions and conversations with the
Plaintiffs. The Defendants had, on
discovery in the main action, resisted
disclosure of several documents
which form the basis of the dispute in
the present case. These disputed
documents were two reports made
and addressed to the SFA by the
Defendants' solicitors and auditors,
along with correspondence subse-
quent to these reports between the
Defendants and SFA; their solicitors
and SFA and the Defendants and
their auditors. These reports had
been provided by the Defendants to
the SFA on a voluntary basis and, it
was submitted on behalf of the
Defendants, 'on the assumption that
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