Following on from the seismic changes brought on by the decision in Johnson v FirstRand Bank Ltd, Wrench v FirstRand Bank Ltd and Hopcraft v Close Brothers Ltd. [2024] EWCA Civ 1282, dealers and finance institutions have been holding their breath to see if the matter would proceed to the Supreme Court.
In what appears to be an early Christmas present, on 11 December 2024 the Supreme Court confirmed that the appeal would be considered and set a period for the hearing as Hilary Term 2025. For those of you unfamiliar with the legal calendar used by the Supreme Court, this is between Monday 13 January and Wednesday 16 April 2025.
Whilst it is too early to form conclusions regarding the Supreme Court’s decision, the Court is unlikely to make matters worse. The appeal will allow the Court to consider detailed legal arguments and, where appropriate, to row back from some of the more contentious aspects of the Court of Appeal decision.
Financial Conduct Authority
At a minimum, the Supreme Court will provide further clarification as to the extent of the duty owed by dealers to consumers when selling finance, and the Court’s reasoning will have a large impact on the FCA considerations regarding commissions claims, the investigations of which are currently on hold.
The FCA are currently considering whether to extend their investigation into historical commission complaints until either 31 May 2025 or 04 December 2025. In a statement concerning the Supreme Court’s decision to expedite an appeal, the FCA confirmed that it will publish its position on this extension on 19 December 2024. We will of course keep you informed.
Motor Industry Legal Services (MILS Legal Ltd)
Motor Industry Legal Services (MILS) provides fully comprehensive legal advice and representation to UK motor retailers for one annual fee. It is the only law firm in the UK which specialises in motor law and motor trade law. MILS currently advises over 1,000 individual businesses within the sector as well as the Retail Motor Industry Federation (RMI) and its members.
