14th Feb 2014
Alistair Schaff QC successfully appeared for a financial services firm and its insurers in this very important decision.
The case concerned the FOS (Financial Ombudsman Service) jurisdiction and the effect of complainants who accepted a FOS determination in their favour up to the maximum enforceable limit awardable by FOS ( then £100,000; now £150,000) and subsequently tried to sue in court for additional compensation in respect of the same claim, over and above the sum awarded by FOS. Cranston J had refused to strike out the court proceedings. The Court of Appeal allowed the appeal, ruling that the doctrine of res judicata applied to a determination by FOS and that complainants could not accept a determination and then sue in court for additional compensation in respect of the same cause of action.
To view the judgment click here.