Cooper v Syfrets Trust Limited

In September 1990 the respondent, Syfrets Trust Limited, which held itself out as an expert financial adviser, through its employee Mr Van der Merwe, advised the appellant, Mr Cooper, to invest substantial sums personally and as trustee in Masterbond, representing it as a secure investment. The initial investments were for one year and matured in September 1991. Masterbond later collapsed. In 1991 the appellant reinvested the funds directly with Masterbond on new terms. He alleged that this reinvestment was either pursuant to the original 1990 advice or, alternatively, based on fresh negligent advice allegedly given by Van der Merwe in August 1991. Masterbond was placed under liquidation and curatorship, causing the appellant loss. The appellant sued Syfrets for damages based on breach of contract and negligence.

The appeal was dismissed with costs.

The case clarifies the limits of liability for negligent professional investment advice in South African law, confirming that advice given for a specific transaction does not automatically extend to future reinvestments unless clearly undertaken. It also reaffirms strict requirements for pleading, proof of causation, and proof of damages, particularly where losses may be mitigated by future payments.