Taberna Europe CDO II Plc v Selskabet AF 1.September 2008 in Bankruptcy

Taberna Europe CDO II Plc v Selskabet AF 1.September 2008 in Bankruptcy

Section 2(1) of the Misrepresentation Act 1967 entitles a representee to recover only such damages as flow from entering into a contract with the representor; since Taberna's loss arose from its contract with Deutsche Bank, not Roskilde, it cannot recover under section 2(1). The disclaimer in the Investor Presentation was effective to exclude liability for misrepresentation.

Parties
Claimant/respondent: Taberna Europe CDO II Plc; Defendant/appellant: Selskabet af 1. September 2008 in Bankruptcy (formerly Roskilde Bank A/S)
Jurisdiction
England and Wales
Judgment Date
08 December 2016
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed; claim dismissed.
Legal Topics
Misrepresentation, Damages, Exclusion Clauses, Contributory Negligence, Secondary Market Securities, Statutory Interpretation
Commercial Law Contract Law Tort Law Misrepresentation Damages Exclusion Clauses Contributory Negligence Secondary Market Securities +1 more

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Parties

Taberna Europe CDO II Plc

Claimant/respondent

Selskabet af 1. September 2008 in Bankruptcy (formerly Roskilde Bank A/S)

Defendant/appellant

Procedural Posture

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

Legal Issues

  1. 1 Whether Roskilde made a misrepresentation to Taberna regarding non-performing loans
  2. 2 Whether Taberna is entitled to damages under section 2(1) of the Misrepresentation Act 1967
  3. 3 Effectiveness of disclaimer/exclusion clauses in non-contractual documents

Ratio Decidendi

Section 2(1) of the Misrepresentation Act 1967 entitles a representee to recover only such damages as flow from entering into a contract with the representor; since Taberna's loss arose from its contract with Deutsche Bank, not Roskilde, it cannot recover under section 2(1). The disclaimer in the Investor Presentation was effective to exclude liability for misrepresentation.

Court Disposition

Appeal allowed; claim dismissed.

Orders

  • Judgment for Taberna set aside
  • Claim for damages under section 2(1) of the Misrepresentation Act 1967 dismissed