Parties may not claim additional damages in court following acceptance of an FOS determination
29 May 2014
In Clark & anr v In Focus Asset Management & Tax Solutions Ltd  EWCA 118, 14 February 2014, the Court of Appeal overturned a decision of the High Court that had held that Mr and Mrs Clark (the Respondents) could claim additional damages by way of a civil claim despite the fact they had already accepted a favourable determination by the Financial Ombudsman Service (FOS). The Court of Appeal held that the Respondents could not pursue civil claims in court for damages over and above those received as a result of an FOS decision.
Court of Appeal
- First, whether the doctrine of res judicata (that, generally speaking, a matter may not be re-litigated once it has been judged on its merits) precludes a claimant from commencing legal proceedings in order to pursue complaints that had already been decided by the FOS.
- Secondly, whether s228(5) of the FSMA excludes the operation of res judicata. Section 228(5) of the FSMA states that if a complainant notifies the FOS that he accepts its determination, it is binding on the complainant and respondent and is final.