Towergate Financial (Group) Ltd & Ors v Clark & Ors

Towergate Financial (Group) Ltd & Ors v Clark & Ors

The court held that the claimants' notice under clause 6.7 was not premature and could validly relate to a prospective claim under the indemnity in clause 5.9, as the agreement does not require a third party claim to have been made before notice is given. The summary judgment application was dismissed as the claim had a real prospect of success.

Parties
Claimant: Towergate Financial (Group) Ltd & Others; Defendant: Clark and Others
Jurisdiction
England and Wales
Judgment Date
27 July 2017
Procedural Posture
Commercial / Summary Judgment Application
Outcome
summary judgment application dismissed
Legal Topics
Share Purchase Agreement, Indemnity, Notice Provisions, Professional Negligence
Contract Commercial Share Purchase Agreement Indemnity Notice Provisions Professional Negligence

Case Brief

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Parties

Towergate Financial (Group) Ltd & Others

Claimant

Clark and Others

Defendant

Procedural Posture

Commercial / Summary Judgment Application

Legal Issues

  1. 1 Whether the claimants' notice under clause 6.7 was valid for a claim under the indemnity in clause 5.9
  2. 2 Whether the notice was premature or insufficiently specific
  3. 3 Whether notice was given 'as soon as possible' as required by the agreement

Ratio Decidendi

The court held that the claimants' notice under clause 6.7 was not premature and could validly relate to a prospective claim under the indemnity in clause 5.9, as the agreement does not require a third party claim to have been made before notice is given. The summary judgment application was dismissed as the claim had a real prospect of success.

Court Disposition

summary judgment application dismissed

Orders

  • Defendants' application for summary judgment dismissed
  • Claimants awarded costs of £55,000 payable within 21 days