Regular blog readers may recall my colleague Liina's blog confirming that complainants to the Financial Ombudsman Service (FOS) would be able to accept an award (capped at £150,000) and then seek to recover the balance of their losses by raising Court proceedings.
ONE BITE OR TWO?
However the case of Clark v In Focus Asset Manageement & Tax Solutions Limited  EWHC 3669 (QB), which confirmed Complainants could have 'two bites at the cherry' was appealed recently. The appeal was heard on 22 and 23 October 2013 by the English Court of Appeal and the judgement is eagerly awaited. The decision of the Court of Appeal should hopefully clarify this 'grey area' of the law so FOS Complainants know where they stand.
APPEAL DECISION AWAITED
We will let you know as soon as we know the Court of Appeal's decision, as clearly it has significant implications for those Complainants who have suffered losses in excess of £150,000 but wish to use the FOS Award to fund further Court litigation to recover their full losses.
GET IN TOUCH
Do you have any queries about making a FOS Complaint and the implications for any future litigation? Do you need assistance with a FOS Complaint or require to raise Court proceedings for a financial dispute?
If so, MBM Commercial LLP may be able to assist you. For more information, please contact a solicitor in the Financial & Banking Disputes team, on 0131 226 8200.