Excellent experience start to finish – always very responsive to any queries and the turnaround on the property I was buying was very quick, even in the busy time leading up to stamp duty deadline. Jenny was always very helpful and went above and beyond to close on a short timescale.
We acted on behalf of Glossop Carton and Print Company (“Glossop Cartons”)
In a successful claim in the Court of Appeal against Philip Smith, Contact (Print & Packaging) Limited and Embark Pensions Trustees (together “Contact”) concerning fraudulent misrepresentations made during a business assets sale.
During the negotiations, Mr Smith (the sole director of Contact) made representations to Glossop Cartons concerning the electricity supply and as to the incidence of flooding. Shortly after Glossop Cartons purchased the Contact business, an electricity supply was cut-off and there were serious flooding issues.
In the High Court, Mr Smith (belatedly) admitted he made a number of fraudulent misrepresentations to achieve the business asset sale.
The High Court only awarded limited damages.
Glossop Cartons appealed.
The appeal was heard by Sir Geoffrey Vos, Master of the Rolls, Lord Justice Birss and Lord Justice Warby. The Court of Appeal awarded Glossop Cartons substantial damages and costs.
In his judgment, Sir Geoffrey Vos found Glossop Cartons were entitled to recover the difference between the price paid and the assessed market value of the assets purchased, “whatever miscalculations it may have made in entering into the transaction”. He held the High Court had erred in awarding damages based on what Glossop Cartons had “factored in” their calculation of the purchase price.
Andrew Ryan – Partner and Head of Dispute Resolution at Davis Blank Furniss – said: “We are delighted the Court of Appeal found in favour of Glossop Cartons and awarded substantial damages and costs. We also hope the decision will help other victims of fraud”.
Glossop Carton and Print Limited -v- Contact (Print and Packaging) Limited and Others [2021] EWCA Civ 639
