Shafi v Rutherford [2014] EWCA Civ 1186 (19 June 2014)
The expert erred by constraining his determination to the treatment of the Braemar leases in the 2008 accounts, rather than applying the correct accounting policy as required by the agreement; this constituted a material departure from his instructions and rendered the determination invalid and unenforceable.
- Citation
- [2014] EWCA Civ 1186
- Parties
- Appellant/claimant: Ms Sofia Shafi; Respondent/defendant: Dr Alexandra Rutherford
- Jurisdiction
- England and Wales
- Judgment Date
- 19 June 2014
- Procedural Posture
- Civil Appeal / Appeal From Preliminary Issue Determination
- Outcome
- Appeal dismissed
- Legal Topics
- Expert Determination, Contractual Interpretation, Accounting Policies, Share Sale Agreements
Case Brief
Summary, issues, holding and outcome
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Parties
Ms Sofia Shafi
Appellant/claimant
Dr Alexandra Rutherford
Respondent/defendant
Procedural Posture
Civil Appeal / Appeal From Preliminary Issue Determination
Legal Issues
- 1 Whether the expert determination regarding completion liabilities under a share sale agreement is valid and enforceable
- 2 Proper construction of accounting policy clauses in the agreement
Ratio Decidendi
The expert erred by constraining his determination to the treatment of the Braemar leases in the 2008 accounts, rather than applying the correct accounting policy as required by the agreement; this constituted a material departure from his instructions and rendered the determination invalid and unenforceable.
Court Disposition
Appeal dismissed
Orders
- Declaration that the expert determination is not valid and enforceable
- Order for a fresh determination on correct principles
Full Case Text
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