In a landmark decision, the Supreme Court has reshaped the landscape of fiduciary relationships and common law bribery in Johnson v FirstRand Bank Ltd [2025] UKSC 33.
The judgment restores orthodoxy in the law of fiduciary duties and common law bribery, while simultaneously providing a basis and benchmark for future motor finance commission claims under s 140A of the Consumer Credit Act 1974 (CCA 1974).
Background
The three conjoined appeals considered the sale of motor finance to financially unsophisticated consumers buying second-hand cars. The car dealerships arranged the finance the buyers required, receiving a commission from the lenders, which was undisclosed or only partially disclosed to the consumers. The claimants alleged that these payments were unlawful, and brought proceedings against the lenders.
The Court of Appeal’s decision in October 2024 ([2024] EWCA Civ 1282), which found the lenders liable, sent shockwaves through the financial markets and sparked significant legal debate. The lenders appealed
