Manchester Building Society v. Grant Thornton

In UK Squire Patton Boggs, advised on the matter.

Squire Patton Boggs advised Manchester Building Society with a team including Anthony Taylor (Picture – Dispute Resolution).

The case, which dates back to 2013, arose from negligent advice given by Grant Thornton concerning the use of “hedge accounting” to reduce the volatility of the mark-to-market value of swaps in its accounts. The error forced the Society to close out its long-term swaps, which caused a multimillion-pound loss and meant that it had to source emergency funding.

The case was heard in October 2020 by a seven-judge panel of the Supreme Court, who unanimously determined that the losses suffered by the Society were within the scope of Grant Thornton’s duty. The judgment has significantly reformulated the legal test for the scope of duty of care owed by professional advisers to their clients.

The Squire Patton Boggs team representing Manchester Building Society was led by Litigation partner Anthony Taylor (Picture) and included director Peter Lees and associate Alex Villers.

Involved fees earner: Peter Lees – Squire Patton Boggs; Anthony Taylor – Squire Patton Boggs; Alex Villers – Squire Patton Boggs;

Law Firms: Squire Patton Boggs;

Clients: Manchester Building Society;

Author: Giulia Di Palma