Court of Appeal rules on audit liability

In its first full ruling on audit liability for several years, the Court of Appeal has upheld the first instance decision in the MAN/Freightliner litigation, finding that the auditors of a subsidiary were not liable to the parent in respect of losses suffered by the parent as a result of a fraud in the subsidiary: … Read more

House of Lords ruling expands availability of compound interest

The House of Lords has held that compound interest is recoverable in a claim for restitution of money paid under a mistake of law and, although strictly obiter, indicated that it would be recoverable in principle in any claim in tort or for breach of contract, including debt claims: Sempra Metals Ltd (formerly Metallgesellschaft Ltd) … Read more

Abuse of the court process for issuing a Claim Form

A recent decision of the High Court has clarified the circumstances in which the issue of a Claim Form will constitute an abuse of the court process: Nomura International plc v Granada Group Limited and others [2007] EWHC 642 (Comm). In addition the case has affirmed that the only proper sanction for such an abuse … Read more

‘Reasonable endeavours’ undertaking – Commercial Court clarification

“Reasonable endeavours” and “best endeavours” undertakings are very commonly found in contracts of almost every description, and whether a party may be prepared to accept such an obligation is regularly debated in commercial negotiations.  Despite the frequency with which these obligations are routinely accepted, there is surprisingly little reasoned authority on the scope and extent … Read more

House of Lords overhaul economic torts

The decision of the House of Lords handed down earlier this month has made headlines in the mainstream as well as the legal press. For the mainstream press, the interest in the decision lay in the continuing saga arising out of Hello!’s publication of unauthorised photographs of the wedding of Catherine Zeta Jones and Michael … Read more

Recovery of management and staff costs

In a decision which has provided valuable guidance in resolving an area of legal uncertainty, the Court of Appeal has clarified the conditions which need to be fulfilled for payments made towards management and staff costs to be recoverable as damages. It was held in Aerospace Publishing Limited & Another v Thames Water Utilities Limited … Read more

Recent case on champerty

The recent case of Mansell v Robinson [2007] EWHC 101 (QB) has demonstrated the court’s modern, more flexible approach to the rules against champerty. The court will not apply a mechanistic rule but will consider each case on its facts, in particular as to whether the facts suggest that the person assisting in litigation for … Read more