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Expect Complex Ruling From UK Justices In Car Dealer Case
Reprinted from: Law360 | 05/01/2025Cadwalader partner Tom Grodecki authored an article in Law360, “Expect Complex Ruling From UK Justices In Car Dealer Case,” published on May 1.
In the article, Tom analyzes the U.K. Supreme Court’s April 2 hearing in three joined test cases—Johnson v. FirstRand Bank Ltd., Wrench v. FirstRand Bank Ltd., and Hopcraft v. Close Brothers Ltd.—addressing whether car dealers who also act as credit brokers owe fiduciary duties to customers. The Court of Appeal had found that inadequate disclosure of commissions created such a duty, exposing lenders to significant liability, including full repayment of commissions and contract rescission.
Tom explores the implications for lenders, brokers, and regulatory frameworks, noting the Financial Conduct Authority’s intervention and its potential impact on future redress schemes.
Read the full article here.
