Swindle v Harrison

JurisdictionEngland & Wales
CourtCourt of Appeal (Civil Division)
Judgment Date25 March 1997
Date25 March 1997

Court of Appeal

Before Lord Justice Evans, Lord Justice Hobhouse and Lord Justice Mummery

Swindle and Others
and
Harrison and Another

Negligence - solicitors - failure to disclose not fraudulent - causation

Negligence without fraud attracts no damages

A person who raised a mortgage on her home, obtained a bridging loan and purchased another property was not entitled to recover from the solicitors who had provided the loan but had failed to disclose material facts and so were in breach of fiduciary duty, damages or compensation for loss of the value of equity in her home except on proof either that they had acted fraudulently or in a manner equitably equivalent to fraud, or that she would not have completed the purchase if full disclosure had been made and the breach not occurred.

The Court of Appeal so stated in a reserved judgment when dismissing an appeal by the second defendant, Mary Harrison, against an order of Mr Recorder Sir Andrew Watson at Warwick County Court on November 6, 1995 that no damages flowed from breach of duty and negligence by the plaintiffs, Stephen Swindle, Timothy Fillmore, Tony Cox and Rosalind Rowett, of Alsters, Leamington Spa, a firm of solicitors, in respect of making Mrs Harrison a bridging loan to purchase a property.

The judge had found that the plaintiffs were negligent and in breach of fiduciary duty in failing to disclose two material facts that Mrs Harrison's...

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61 cases
15 books & journal articles
  • Chapter 24: Professional Liability
    • United Kingdom
    • Taylor and Francis Insurance Disputes Part 2: Specific Contracts
    • Invalid date
    ...1 [1914–1915] All ER Rep 45. 1 [1996] 4 All ER 698 (CA). 1 See para. 24.45, above. 1 [1996] 4 All ER 698 (CA); see also Swindle v Harrison [1997] 4 All ER 705 (CA) and Lloyds TSB Bank Plc v Markandan & Uddin [2011] PNLR 6, for further examples of the application of the decision in Mothew to......
  • Chapter 2: Other contracts of the utmost good faith
    • United Kingdom
    • Taylor and Francis Good Faith and Insurance Contracts
    • Invalid date
    ...v Cox [1917] 2 Ch 71, 80 (per Lord Cozens-Hardy MR), 88 (per Scrutton LJ);Phipps v Boardman [1967] 2 AC 46. See alsoSwindle v Harrison [1997] 4 All ER 705, 716 (per Evans LJ);Ross River Ltd v Cambridge City Football Club Ltd [2007] EWHC 2115 (Ch); [2008] 1 All ER 1004, [196]–[197] (Briggs J......
  • Chapter 16: Remedies
    • United Kingdom
    • Taylor and Francis Good Faith and Insurance Contracts
    • Invalid date
    ...judgment of Lord Mustill in Pan Atlantic Insurance Co Ltd v Pine Top Insurance Co Ltd [1994] 2 Lloyd’s Rep 427, 449. 17 Swindle v Harrison [1997] 4 All ER 705, 726–727 (per Hobhouse 18 Swindle v Harrison [1997] 4 All ER 705, 714 (per Evans LJ). See Mason, “The Place of Equity and Equitable ......
  • Chapter 4: The source of the duty of utmost good faith
    • United Kingdom
    • Taylor and Francis Good Faith and Insurance Contracts
    • Invalid date
    ...to have lapsed into a “fusion fallacy”), attempts are being made to find “underlying common principles”: see, for example, Swindle v Harrison [1997] 4 All ER 705, 714 (per Evans LJ), 726 (per Hobhouse LJ). See Burrows, “We do this at common law but that in equity” (2002) 22 OJLS 16 Blacksto......
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