Credit Suisse First Boston Corporation v Rawi [2002] EWHC 222 (Commercial) (21st February, 2002)

Credit Suisse First Boston Corporation v Rawi [2002] EWHC 222 (Commercial) (21st February, 2002)

The defendant deliberately and dishonestly misrepresented to CSFB, via Hayford, that a matching sale of Ariba shares had been executed, intending to induce CSFB to delay closing out the purchase. CSFB relied on this representation and suffered loss as a result. The defendant is personally liable in deceit....

Source-derived case information.

Citation
[2002] EWHC 222 (Commercial)
Parties
Claimant: Credit Suisse First Boston Corporation; Defendant: Faris Al Rawi
Jurisdiction
England and Wales
Procedural Posture
Commercial Court Claim / Final Judgment After Trial
Outcome
Claim allowed
Legal Topics
Deceit, Fraudulent Misrepresentation, Director's Personal Liability, Securities Trading, Contributory Negligence
Tort Law Commercial Law Financial Services Law Deceit Fraudulent Misrepresentation Director's Personal Liability Securities Trading Contributory Negligence

Source-derived case record

Summary, issues, holding and outcome

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Parties

Credit Suisse First Boston Corporation

Claimant

Faris Al Rawi

Defendant

Procedural Posture

Commercial Court Claim / Final Judgment After Trial

Legal Issues

  1. 1 Whether the defendant dishonestly induced or procured Hayford Investment Management Ltd to commit the tort of deceit against CSFB
  2. 2 Whether the defendant is personally liable in deceit for fraudulent statements made as director
  3. 3 Whether CSFB relied on the alleged misrepresentations and was induced thereby to act to its detriment

Ratio Decidendi

The defendant deliberately and dishonestly misrepresented to CSFB, via Hayford, that a matching sale of Ariba shares had been executed, intending to induce CSFB to delay closing out the purchase. CSFB relied on this representation and suffered loss as a result. The defendant is personally liable in deceit. Contributory negligence is not a defence to deceit, and the quantification of loss by CSFB is accepted.

Court Disposition

Claim allowed

Orders

  • Judgment for the claimant against the defendant for US$791,699.84, less US$261,251 already recouped by CSFB from commission payments, with interest as appropriate.