9th April 2019
This morning the CA (LLJ Longmore, Coulson, Peter Jackson) handed down judgment dismissing the Claimant’s appeal against the decision of Mr Justice Teare in of Nederlandse Industrie Van Eiprodukten (‘NIVE’) v Rembrandt Enterprises, Inc.
NIVE had agreed to export millions of dollars of egg product to Rembrandt. Rembrandt terminated the contract early. NIVE sought damages for loss of profits, but the quantum of their claim demonstrated that the price they had agreed with Rembrandt had been dishonestly and artificially inflated. In addition, the claim included profits lost by a sister organisation called Henningsen. Rembrandt defended the claim on the basis that (a) it was entitled to rescission of the contract on the basis of NIVE’s fraud and (b) it was not liable in respect of Henningsen’s profits.
This is a leading case regarding the test for causation in fraud cases; and the circumstances in which a contracting party can bring a claim for losses sustained by a third party.
The judgment lays down two important principles:
The First Instance Judgment is here.
Gavin Kealey KC, Simon Goldstone and Henry Moore appeared for the successful respondent, instructed by Christopher Webber and Kate Wakeham of Squire Patton Boggs UK LLP.
For help and advice talk to a member of our clerking team. They can advise on the best options for your matter.
Call: +44 (0) 20 7842 5555