Parabola Investments Ltd & Ors v Browallia Cal Ltd & Ors

Parabola Investments Ltd & Ors v Browallia Cal Ltd & Ors

Damages for loss of profits after discovery of fraud are recoverable in deceit where the fraud has a continuing effect, and the claimant is 'locked in' to a disadvantageous situation; quantification is a matter of reasonable estimation, not strict proof.

Parties
Claimant/respondent: Parabola Investments Limited; Claimant/respondent: Aria Investments Limited (formerly Tangent Investments Limited); Defendant/appellant: Browallia Cal Limited (formerly Union Cal Limited); Defendant/appellant: MF Global UK Limited (formerly Man Financial Limited); Defendant/appellant: Matthew Bomford
Jurisdiction
England and Wales
Judgment Date
05 May 2010
Procedural Posture
Civil Appeal / Appeal From Commercial Court Judgment
Outcome
Appeal dismissed
Legal Topics
Damages for Deceit, Loss of Investment Opportunity, Remoteness of Damages, Assessment of Damages, Interest on Damages
Tort Fraud Damages Damages for Deceit Loss of Investment Opportunity Remoteness of Damages Assessment of Damages Interest on Damages

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Parties

Parabola Investments Limited

Claimant/respondent

Aria Investments Limited (formerly Tangent Investments Limited)

Claimant/respondent

Browallia Cal Limited (formerly Union Cal Limited)

Defendant/appellant

MF Global UK Limited (formerly Man Financial Limited)

Defendant/appellant

Matthew Bomford

Defendant/appellant

Procedural Posture

Civil Appeal / Appeal From Commercial Court Judgment

Legal Issues

  1. 1 Whether damages for loss of profits after discovery of fraud are recoverable in deceit
  2. 2 Proper date for assessment of damages in fraud cases
  3. 3 Principles governing quantification of consequential loss

Ratio Decidendi

Damages for loss of profits after discovery of fraud are recoverable in deceit where the fraud has a continuing effect, and the claimant is 'locked in' to a disadvantageous situation; quantification is a matter of reasonable estimation, not strict proof.

Court Disposition

Appeal dismissed

Orders

  • Permission to appeal on quantification refused
  • Judgment of Commercial Court upheld