CA decision ‘Nelmes v NRAM’ on secret broker commission

The Court of Appeal handed down judgment yesterday in ‘Nelmes v NRAM plc’. The Court found that there was an ‘unfair relationship’ arising from a secret broker commission. A related undisclosed agreement under which the bank was to pay the borrower’s broker a procuration fee deprived the borrower of the disinterested advice of his broker. It is notable that the relief granted was restricted to the amount of the commission. Judgment text available here: Nelmes v NRAM. Article by Ruth Bala available here.