Surprise as court allows claim to recover losses above FOS ruling

The High Court has held that individuals who have had a complaint determined by the Financial Ombudsman Service (FOS), and who have accepted the determination of the FOS in their favour, are not prevented from bringing a subsequent court claim to recover damages in excess of the FOS’s ruling.

This surprising decision in Clark v In Focus Asset Management & Tax Solutions Ltd may well be appealed, and certainly Court of Appeal guidance on this question is now required. It had been thought, following Andrews v SBJ Benefit Consultants, that where a claimant accepts a final determination from the FOS this would preclude a court claim in relation to the same matter. The point is relevant to high value claims because the FOS can award a maximum of £150,000 and merely recommend the respondent firm pay the balance.

If you are registered and logged in to the site, click on the link below to read the rest of the Walker Morris briefing. If not, please register or sign in with your details below.