Capita (Banstead 2011) Limited v RFIB Group Limited 21/12/15 (CA)

Advisors to pension trustees failed to implement changes to the pension scheme in the proper way such that when introduced they could only be introduced prospectively with the result that the scheme’s liabilities were greater than they should otherwise have been, and thereby increased the costs of funding the scheme. The claim against the advisors was settled by mediation for a reasonable sum by the company that acquired the advisors. That company sought to recover the settlement sum under an indemnity which provided an indemnity for liabilities at the transfer date. The question arose as to whether there was a continuing breach of duty before and after the transfer date such that only a proportion of the settlement amount should be recoverable. The court determined that the reasoning in Midland Bank Trust Co v Hett Stubbs & Kemp had been impliedly overturned in Bell v Peter Browne & Co and that the Court of Appeal was bound to follow the decision in the latter case and find that there was no continuing breach of duty in the advisors failing to correct their previous unidentified mistakes giving rise to a fresh cause of action on a day to day basis.