News
Danny McCance 5 Jul 2019 10:54am

MBS to appeal Grant Thornton damages decision

Manchester Building Society (MBS) has been granted the right to appeal by the Supreme Court in a long-running court battle with Grant Thornton

The building society will now be able to appeal a decision made in favour of the UK’s sixth-largest accountancy firm by the Court of Appeals in January.

MBS was originally seeking damages of £48.5m for breach of contract, negligence and breach of statutory duty in relation to audit services and advice provided by Grant Thornton.

In May last year, the High Court awarded MBS damages of £315,345 (plus interest) which it then appealed, calling the decision “disappointing” and “considerably below the amount claimed”.

The Court of Appeals backed the High Court’s decision to award MBS £335,727 in damages, holding that Grant Thornton was not liable for the significant losses (£42m) suffered on transactions MBS entered into as a result of the firm’s negligent advice.

The building society was also ordered to pay costs of the appeal.

In its statement yesterday MBS said that it “intends to proceed with the appeal,” adding that the date of the hearing at the Supreme Court will be announced in due course.

A spokesperson for Grant Thornton UK said, “We note that the Supreme Court has given Manchester Building Society permission to appeal, and we await the hearing in due course.”

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