BG Plc v Nelson Group Services (Maintenance) Ltd. [2002] EWCA Civ 547 (24th April, 2002)

BG Plc v Nelson Group Services (Maintenance) Ltd. [2002] EWCA Civ 547 (24th April, 2002)

The settlement agreements did not, on their proper construction, preclude Nelsons' claim for misrepresentation based on the lack of justification for the ITT forecasts, as such claims were not within the contemplation of the parties at the time of settlement. Section 2(1) of the Misrepresentation Act 1967 applies to implied misrepresentations where the circumstances justify such implication.

Citation
[2002] EWCA Civ 547
Parties
Defendant/appellant: BG plc; Claimant/respondent: Nelson Group Services (Maintenance) Ltd
Jurisdiction
England and Wales
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal dismissed
Legal Topics
Misrepresentation, Contractual Interpretation, Settlement Agreements, Negligent Misstatement
Contract Law Tort Law Commercial Law Misrepresentation Contractual Interpretation Settlement Agreements Negligent Misstatement

Case Brief

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Parties

BG plc

Defendant/appellant

Nelson Group Services (Maintenance) Ltd

Claimant/respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether section 2(1) of the Misrepresentation Act 1967 applies to implied misrepresentations
  2. 2 Proper interpretation of settlement clauses in June/July and August 1996 compromise agreements
  3. 3 Whether the settlement agreements preclude the current claim for misrepresentation

Ratio Decidendi

The settlement agreements did not, on their proper construction, preclude Nelsons' claim for misrepresentation based on the lack of justification for the ITT forecasts, as such claims were not within the contemplation of the parties at the time of settlement. Section 2(1) of the Misrepresentation Act 1967 applies to implied misrepresentations where the circumstances justify such implication.

Court Disposition

Appeal dismissed

Orders

  • Appellant to pay respondent's costs of the appeal, subject to detailed assessment if not agreed