Man Nutzfahrzeuge Aktiengesellschaft & Ors v Freightliner Ltd & Ors

Man Nutzfahrzeuge Aktiengesellschaft & Ors v Freightliner Ltd & Ors

The applications to strike out or summarily dismiss the claims against EYUK and EYC, and to set aside service out of the jurisdiction, must fail because the issues of duty, breach, causation, and scope of liability are fact-sensitive, raise real issues to be tried, and cannot be determined without a full investigation of the facts. The law in this area is developing and not free from difficulty, and Freightliner has a real prospect of success on its claims.

Parties
Claimant: MAN Nutzfahrzeuge Aktiengesellschaft; Claimant: MAN Aktiengesellschaft; Claimant: ERF Limited; Claimant: ERF (Holdings) PLC; Defendant: Freightliner Limited; Part 20 Defendant: Ernst & Young (Canada); Part 20 Defendant: Ernst & Young (UK)
Jurisdiction
England and Wales
Judgment Date
07 October 2003
Procedural Posture
Commercial Court Part 20 Claim / Ruling on Applications to Set Aside Service and for Summary Judgment/strike Out
Outcome
Applications dismissed; permission to amend Part 20 claim granted.
Legal Topics
Auditor's Duty of Care, Negligent Misstatement, Causation of Loss, Contribution Claims, Summary Judgment, Jurisdictional Challenge
Commercial Law Tort Law Professional Negligence Auditor's Duty of Care Negligent Misstatement Causation of Loss Contribution Claims Summary Judgment +1 more

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Parties

MAN Nutzfahrzeuge Aktiengesellschaft

Claimant

MAN Aktiengesellschaft

Claimant

ERF Limited

Claimant

ERF (Holdings) PLC

Claimant

Freightliner Limited

Defendant

Ernst & Young (Canada)

Part 20 Defendant

Ernst & Young (UK)

Part 20 Defendant

Procedural Posture

Commercial Court Part 20 Claim / Ruling on Applications to Set Aside Service and for Summary Judgment/strike Out

Legal Issues

  1. 1 Whether auditors owed a duty of care to the vendor in the context of a specific sale
  2. 2 Whether the auditors' duties extended to cover losses claimed by the vendor arising from the sale and warranties
  3. 3 Whether the claims should be struck out or determined summarily for lack of real prospect of success

Ratio Decidendi

The applications to strike out or summarily dismiss the claims against EYUK and EYC, and to set aside service out of the jurisdiction, must fail because the issues of duty, breach, causation, and scope of liability are fact-sensitive, raise real issues to be tried, and cannot be determined without a full investigation of the facts. The law in this area is developing and not free from difficulty, and Freightliner has a real prospect of success on its claims.

Court Disposition

Applications dismissed; permission to amend Part 20 claim granted.

Orders

  • Applications by EYUK and EYC to strike out or summarily dismiss the claims and to set aside service are dismissed.
  • Permission granted to Freightliner to amend the Part 20 claim in the form before the court, subject to costs of and occasioned by the amendments.