Nelmes v NRAM plc: the latest twist in brokers’ fiduciary duties

The Court of Appeal recently ruled there was a breach of duty where a broker had received commission from a lender, unbeknown to the client, who also paid the broker directly. The Court’s finding of an unfair relationship created by payment of the procuration fee could lead to more significant remedies in other cases, depending on the facts, says Jason Woodland.

Jason Woodland is a partner in the commercial litigation, civil fraud and asset tracing department at law firm Peters & Peters. He may be contacted on jwoodland@petersandpeters.com.

On 26 May 2016, in Nelmes v NRAM plc [2016] EWCA Civ 491, the Court of Appeal ruled on an unfair relationship claim arising from a loan made by Northern Rock plc (now named NRAM plc) (NR) to Thomas Nelmes to re-finance a portfolio of buy-to-let properties.