Shafi v Rutherford [2014] EWCA Civ 1186 (19 June 2014)

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

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 2 Authorities cited 2 Party arguments 2 Amounts and remedies 3
Sign in to unlock

Parties

Ms Sofia Shafi

Appellant/claimant

Dr Alexandra Rutherford

Respondent/defendant

Procedural Posture

Civil Appeal / Appeal From Preliminary Issue Determination

  1. 1 Whether the expert determination regarding completion liabilities under a share sale agreement is valid and enforceable
  2. 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