Haugesund Kommune & Anor v Depfa ACS Bank & Anor

Haugesund Kommune & Anor v Depfa ACS Bank & Anor

Depfa is entitled to judgment against Wikborg Rein for the full amount of its loss (principal advanced plus funding costs), less actual recoveries from the municipalities, without deduction for the value of its restitutionary rights or potential future recoveries from the municipalities. The law does not require Depfa to pursue its restitutionary claims or to give credit for their value; only actual recoveries reduce the damages recoverable from Wikborg Rein. This is because Depfa suffered loss when it paid away the money in reliance on negligent advice and acquired no enforceable contractual rights, and the scope of Wikborg Rein’s duty covers the whole loss arising from the void...

Parties
Claimant: Haugesund Kommune; Claimant: Narvik Kommune; Defendant: Depfa ACS Bank; Third Party: Wikborg Rein & Co
Jurisdiction
England and Wales
Judgment Date
12 February 2010
Procedural Posture
Commercial Contractual Negligence and Restitution Claim / Post Trial Judgment on Quantification of Damages and Entitlement to Judgment Against Third Party
Outcome
Judgment for Depfa against Wikborg Rein for the full amount of loss, less actual recoveries from the municipalities.
Legal Topics
Measure of Damages, Concurrent Liability, Restitution for Unjust Enrichment, Mitigation of Loss, Scope of Duty, Professional Advice Liability
Contract Law Professional Negligence Restitution Banking Law Measure of Damages Concurrent Liability Restitution for Unjust Enrichment Mitigation of Loss +2 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 16 Party arguments 2 Amounts and remedies 2
Sign in to unlock

Parties

Haugesund Kommune

Claimant

Narvik Kommune

Claimant

Depfa ACS Bank

Defendant

Wikborg Rein & Co

Third Party

Procedural Posture

Commercial Contractual Negligence and Restitution Claim / Post Trial Judgment on Quantification of Damages and Entitlement to Judgment Against Third Party

Legal Issues

  1. 1 Whether Depfa's recoverable loss against Wikborg Rein is to be reduced by the value of its restitutionary rights against the municipalities
  2. 2 Whether Depfa is entitled to judgment for the full amount of its loss against Wikborg Rein, less actual recoveries, regardless of potential further recoveries from the municipalities

Ratio Decidendi

Depfa is entitled to judgment against Wikborg Rein for the full amount of its loss (principal advanced plus funding costs), less actual recoveries from the municipalities, without deduction for the value of its restitutionary rights or potential future recoveries from the municipalities. The law does not require Depfa to pursue its restitutionary claims or to give credit for their value; only actual recoveries reduce the damages recoverable from Wikborg Rein. This is because Depfa suffered loss when it paid away the money in reliance on negligent advice and acquired no enforceable contractual rights, and the scope of Wikborg Rein’s duty covers the whole loss arising from the void...

Court Disposition

Judgment for Depfa against Wikborg Rein for the full amount of loss, less actual recoveries from the municipalities.

Orders

  • Depfa to have judgment against Wikborg Rein for NK108,003,413 in respect of Haugesund and NK149,727,831 in respect of Narvik, calculated up to 29 January 2010, less payments received from the municipalities.
  • Wikborg Rein to pay Depfa’s costs of the municipalities’ claims, Depfa’s counterclaim, and Depfa’s claim against Wikborg Rein, as agreed.