Eco3 Capital Ltd & Ors v Ludsin Overseas Ltd [2013] EWCA Civ 413 (23 April 2013)

Eco3 Capital Ltd & Ors v Ludsin Overseas Ltd [2013] EWCA Civ 413 (23 April 2013)

The defendants made false representations as to the purchase price and structure of the Sandford Farm transaction, knowingly concealed the two-tier structure and differential, intended the claimant to rely, and the claimant did so, suffering loss. Eco and Dr Shadrin acted as agents for Wharf, Maggs, and Balfour, who were complicit and acted dishonestly. All four ingredients of deceit were established; agency and personal liability were proven. The appeal is dismissed.

Citation
[2013] EWCA Civ 413
Parties
Appellant/defendant: ECO3 Capital Limited; Appellant/defendant: Alexander Shadrin; Appellant/defendant: Wharf Land Investments Limited; Appellant/defendant: Douglas Maggs; Appellant/defendant: The Honourable Charles George Yule Balfour; Respondent/claimant: Ludsin Overseas Limited
Jurisdiction
England and Wales
Judgment Date
23 April 2013
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal dismissed
Legal Topics
Deceit, Fraudulent Misrepresentation, Agency, Damages, Pleadings, CPR 32.19
Tort Commercial Law Deceit Fraudulent Misrepresentation Agency Damages Pleadings CPR 32.19

Case Brief

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Parties

ECO3 Capital Limited

Appellant/defendant

Alexander Shadrin

Appellant/defendant

Wharf Land Investments Limited

Appellant/defendant

Douglas Maggs

Appellant/defendant

The Honourable Charles George Yule Balfour

Appellant/defendant

Ludsin Overseas Limited

Respondent/claimant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the defendants are liable for fraudulent misrepresentation (deceit)
  2. 2 Whether the trial judge correctly identified the ingredients of the tort of deceit
  3. 3 Whether the claim was properly pleaded

Ratio Decidendi

The defendants made false representations as to the purchase price and structure of the Sandford Farm transaction, knowingly concealed the two-tier structure and differential, intended the claimant to rely, and the claimant did so, suffering loss. Eco and Dr Shadrin acted as agents for Wharf, Maggs, and Balfour, who were complicit and acted dishonestly. All four ingredients of deceit were established; agency and personal liability were proven. The appeal is dismissed.

Court Disposition

appeal dismissed

Orders

  • All five defendants are jointly and severally liable to Ludsin Overseas Limited for £1.4 million in damages for deceit.
  • Credit given for £600,000 received from Forsters LLP in settlement.