The judgment overturns the Court of Appeal’s finding that car dealers acted as fiduciaries when arranging finance, rejecting the idea that subjective trust creates legal duties. The court clarified that fiduciary relationships require an objective assumption of exclusive loyalty, which was absent in these tripartite transactions.
It also ruled that the tort of bribery demands a fiduciary link, correcting prior case law. Crucially, the decision redefines what counts as ‘secret commissions’, requiring full disclosure of material facts.
While Mr Johnson’s agreement was deemed unfair under the Consumer Credit Act, the ruling leaves key questions open—especially around disclosure and collective redress. With thousands of motor finance claims pending, this judgment reshapes the legal terrain but signals more litigation ahead.
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