Shafi v Rutherford

Shafi v Rutherford

The expert committed a material error by considering himself bound to follow the erroneous treatment of the Braemar leases in the 2008 accounts rather than applying the correct accounting policy as required by the agreement. This error justified the court's intervention and rendered the expert determination invalid and unenforceable.

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, Contract Interpretation, Share Sale Agreements, Accounting Policies in Contracts

Case Brief

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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 the treatment of Braemar leases in completion accounts was valid and enforceable
  2. 2 Proper construction of accounting policy clauses in the share sale agreement

Ratio Decidendi

The expert committed a material error by considering himself bound to follow the erroneous treatment of the Braemar leases in the 2008 accounts rather than applying the correct accounting policy as required by the agreement. This error justified the court's intervention and rendered the expert determination invalid and unenforceable.

Court Disposition

Appeal dismissed

Orders

  • Declaration that the expert determination is not valid and enforceable
  • Order for a fresh expert determination on the correct principles