INVESTORS COMPENSATION SCHEME LIMITED v WEST BROMWICH BUILDING SOCIETY

[1999] Lloyd's Rep PN 496

CHANCERY DIVISION

Before Mr Justice Evans-Lombe

Negligence - Breach of contract - Breach of statutory duty - Misrepresentation - Undue influence - Constructive notice - Restitution - Claims brought by Investors Compensation Scheme as assignees from individual investors and by other individual investors - Equity Release Mortgages and Home Income Plans - Claims for damages and for rescission of mortgages or abatement of sums due - Whether independent financial adviser in breach of contract, in breach of statutory duty and/or in breach of duty of care at common law - Whether independent financial adviser guilty of misrepresentations - Whether independent financial adviser exercised undue influence against individual investors - Whether building society owed duty of care to investors to warn of risks involved in transaction - Whether independent financial adviser was agent of building society - Whether mortgages liable to be set aside as unconscionable bargains or as extortionate credit bargains - Whether building society liable as a joint tortfeasor with independent financial adviser - Extent of restitution which to be made by individual investors as condition of rescission - Whether solicitors in breach of duty to building society - Contribution and indemnity as between building society and solicitors.