Group Seven Ltd v Notable Services LLP and Another

Court of Appeal (Civil Division) [2019] EWCA 614, Lord Justice Henderson, Lord Justice Peter Jackson and Lady Justice Arden, 6-8, 11 March; 11 April 2019

Equity - Dishonest assistance - Breach of trust - Breach of fiduciary duty - Whether assistance dishonest - Blind-eye knowledge - Vicarious liability - Whether bank liable for employee's fraud - Causation - Whether chain of causation broken

This is the first appellate judgment regarding dishonesty since Ivey v Genting Casinos UK Ltd (t/a Crockfords Club) [2017] UKSC 67; [2017] Lloyd's Rep FC 561; [2017] LLR 783; [2018] AC 391; [2017] 3 WLR 1212; [2018] 2 All ER 406; [2018] 1 Cr App R 12. The Court of Appeal's unanimous judgment reinforces and applies the objective test for dishonesty, as laid down in Royal Brunei Airlines Sdn Bhd v Tan [1995] 2 AC 378; [1995] 3 WLR 64; [1995] 3 All ER 97 and reaffirmed and clarified in Ivey following Barlow Clowes International Ltd (In Liquidation) v Eurotrust International Ltd [2005] UKPC 37; [2006] 1 Lloyd's Rep 225; [2006] 1 WLR 1476; [2006] 1 All ER 333; [2006] 1 All ER (Comm) 478 and Twinsectra Ltd v Yardley [2002] UKHL 12; [1999] Lloyd's Rep Bank 438; [2002] 2 AC 164; [2002] 2 WLR 802; [2002] 2 All ER 377. By exemplifying the approach to the dishonesty test, the judgment provides helpful guidance.