Second chance for financial advisory firm in long running £2m High Court claim

A FINANCIAL advisory firm has won its fight to overturn a High Court ruling made in 2014 ordering it to pay more than £2m to its former clients.

An application by York-based TBO Investments to appeal the original ruling ordering it to pay £2,135,676 to Mr and Mrs Mohun-Smith and have a re-trial was granted earlier this week by the Court of Appeal’s Master of the Rolls.

Mr and Mrs Mohun-Smith brought a claim against the company as a result of what they say were negligent recommendations which were made to them in 2007 and 2009.  

The couple had asked TBO to recommend cautious investments from which they could draw an income but claim that TBO instead put in place numerous high risk investments which were not properly explained to them.

Scott Robinson of TBO Investments failed to attend the first hearing due to what he described as family stress and there was no legal representation for the company in Court.

However, the trial continued despite his absence and the Judge in the High Court made an award to Mr and Mrs Mohun-Smith.

Now, the Court of Appeal has ruled that the earlier judge’s decision to proceed in the absence of TBO was incorrect, stating that the judge “adopted too rigorous approach to his assessment of the medical evidence” supplied by the company in support of Mr Scott Robinson’s contention that he was not well enough to attend Court.

Jonathan Mortimer, head of dispute resolution at Harrogate-based Raworths solicitors, who will continue the fight for Mr and Mrs Mohun-Smith, says: “This decision is only on a procedural issue.  The Court has very strict rules about the quality of medical evidence and the circumstances in which an adjournment will be granted.  In my view, TBO and its director Scott Robinson are very lucky to be given a second chance.  The merits of Mr and Mrs Mohun-Smith’s claim subsists and they will continue to fight for compensation and fight to win.”

Mr Mohun-Smith said: “I relied upon the financial advisor to put in place investments for us that would provide a reliable and comfortable standard of living for the rest of our lives.  However, to my complete horror, it has become clear that nearly all our money was placed in unregulated collective investment schemes which have been suspended with an almost complete loss of capital.  We will continue to the retrial and I have no doubt that the judgment will be restored.”

The last annual return lodged at Companies House September 2014 indicates that TBO was at that time and is still believed to be owned in part by Godfrey Bloom, the former UKIP MEP who is understood to own the majority of the shares in the company. TBO trades from Walker’s Byre in Escrick, York.

According to Companies House files, in July 2015 a strike-off action was temporarily suspended under Section 1000 of the Companies Act 2006 following an objection.

 
 

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