A claimant who was negligently advised to transfer his benefits under an occupational pension shcheme suffered loss immediately on the transfer of those pension benefits.
Nykredit Mortgage Bank Plc v Edward Erdman Group Ltd (Interest on Damages) (1997) 1 WLR 1627 (HL) was not authority for some special approach to the question of the point at which loss was suffered in negligent advice cases or even in cases of negligent valuations of property upon which lenders relied to make loans on the security of the property. It all depended on the facts of each case. The moment the claimant’s benefits were transferred, he obtained a bundle of rights that was less advantageous to him than his rights under the original occupational pension scheme. As a result, this was not a pure contingent liability case but rather a transaction case: ‘In my judgment, an investor who wishes to pay £100 in a secure risk-free investment and, in reliance on negligent advice, purchases shares does suffer financial detriment on the acquisition of the shares despite the fact that he pays the market price for the shares. It is no answer to this investor’s complaint that he has been induced to buy a risky investment when he wanted a safe one to say that the risky investment was worth what he paid for it in the market. His complaint is that he did not want a risky investment. A claim for damages immediately upon the acquisition of the shares would succeed.’. The claimant’s claim was therefore statute barred.