Quick Update on Car Dealer Liability on Finance Deals

This comment is from John Cayton, Senior Partner at Caytons – A Gallagher Bassett Company;

Recently, the Supreme Court handed down its judgment finding that motor dealers do not owe a fiduciary duty to customers for whom they facilitate funding for the purchase of a car, nor are they liable to them in the common law tort of bribery or in equity. Caytons – a Gallagher Bassett company – was retained by the National Franchised Dealers Association (NFDA) to represent the interests of motor dealerships throughout this case and John Cayton has commented on the successful outcome:

“We are proud to have worked with our client, the NFDA, and Gough Square chambers to secure today’s successful outcome. This case was set to have major ramifications on motor dealerships throughout the United Kingdom, with pre-Hearing estimated damages in excess of £50 billion. Today’s common-sense judgement will be very welcome news to motor dealerships—many of whom are family-run and play a key role in local economies.

“Following the NFDA’s first instructions to Caytons in January 2025, our team of consumer law experts moved quickly to establish that the Court of Appeal’s approach was not the correct direction that the law should go. The impact of our approach was evident in today’s findings consistent with the submissions presented to the Court by Jonathan Kirk KC—on behalf of the NFDA.”