Capita Alternative Fund Services (Guernsey) Ltd & Anor v Drivers Jonas (A Firm)

Capita Alternative Fund Services (Guernsey) Ltd & Anor v Drivers Jonas (A Firm)

The majority held Capita proved loss from negligent valuation and was entitled to damages, but damages must be reduced by the value of tax credits received by investors, reflecting the true loss suffered. Interest runs from the date of investment.

Parties
Claimant: Capita Alternative Fund Services (Guernsey) Ltd; Claimant: Matrix-Securities Ltd (now in administration); Defendant: Drivers Jonas (A Firm)
Jurisdiction
England and Wales
Judgment Date
08 November 2012
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal allowed in part; damages reduced by tax credits.
Legal Topics
Valuation Negligence, Damages Assessment, Tax Credits in Damages, Interest on Damages
Professional Negligence Commercial Law Valuation Negligence Damages Assessment Tax Credits in Damages Interest on Damages

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Parties

Capita Alternative Fund Services (Guernsey) Ltd

Claimant

Matrix-Securities Ltd (now in administration)

Claimant

Drivers Jonas (A Firm)

Defendant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether Capita proved loss resulting from negligent valuation by Drivers Jonas
  2. 2 Whether damages should be reduced by tax credits obtained by investors
  3. 3 Whether interest should run from the date of investment or later

Ratio Decidendi

The majority held Capita proved loss from negligent valuation and was entitled to damages, but damages must be reduced by the value of tax credits received by investors, reflecting the true loss suffered. Interest runs from the date of investment.

Court Disposition

Appeal allowed in part; damages reduced by tax credits.

Orders

  • Capita awarded damages of £11,861,738, reduced from £18,050,000 by tax credits.
  • Interest awarded from April 2001.