WOOD V COMMERCIAL FIRST BUSINESS LTD AND OTHERS; BUSINESS MORTGAGE FINANCE 4 PLC V PENGELLY

[2021] EWCA Civ 471, Court of Appeal, Lord Justice David Richards, Lord Justice Males and Lady Justice Elizabeth Laing, 31 March 2021

Bribery – Commissions paid to broker for arranging loans – Right of borrower to rescind loans – Whether fiduciary duty required – Secret commissions

In two joined cases with much the same facts, CFBL loaned sums to borrowers. The borrowers defaulted. In the present proceedings they sought rescission of the loans on the ground that CFBL had paid undisclosed commissions to UKMF, the broker acting on behalf of the borrowers for the arrangement of the loans.