Black & Ors v Davies

Black & Ors v Davies

The Court of Appeal found that the trial judge erred in finding that Mr Black gave instructions to close out his position on 8th October 1996 and that Mr Davies' misrepresentation on 9th October caused him to remain short. The contemporaneous evidence did not support Mr Black's reconstruction. As a result, Mr Black could not recover damages from Mr Davies beyond the amount already received from Brandeis. The court also held that there was no jurisdiction to award compound interest on damages for deceit in the absence of money obtained and retained by fraud.

Parties
Appellant: Herbert Black; Appellant: American Iron & Metal; Appellant: Lito Trade Incorporated; Respondent: Vivian John Davies
Jurisdiction
England and Wales
Judgment Date
06 May 2005
Procedural Posture
Civil Appeal / Court of Appeal Judgment on Appeal From High Court
Outcome
Appeal allowed in part; cross-appeal dismissed
Legal Topics
Deceit, Fraudulent Misrepresentation, Damages, Compound Interest, Causation
Commercial Law Tort Law Deceit Fraudulent Misrepresentation Damages Compound Interest Causation

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 12 Party arguments 2 Amounts and remedies 7
Sign in to unlock

Parties

Herbert Black

Appellant

American Iron & Metal

Appellant

Lito Trade Incorporated

Appellant

Vivian John Davies

Respondent

Procedural Posture

Civil Appeal / Court of Appeal Judgment on Appeal From High Court

Legal Issues

  1. 1 Whether Mr Davies fraudulently induced Mr Black to remain short in copper futures by providing false information about Alcatel
  2. 2 Whether Mr Black gave instructions to close out his position on 8th or 6th November 1996
  3. 3 Whether the chain of causation was broken by Mr Black's independent decision

Ratio Decidendi

The Court of Appeal found that the trial judge erred in finding that Mr Black gave instructions to close out his position on 8th October 1996 and that Mr Davies' misrepresentation on 9th October caused him to remain short. The contemporaneous evidence did not support Mr Black's reconstruction. As a result, Mr Black could not recover damages from Mr Davies beyond the amount already received from Brandeis. The court also held that there was no jurisdiction to award compound interest on damages for deceit in the absence of money obtained and retained by fraud.

Court Disposition

Appeal allowed in part; cross-appeal dismissed

Orders

  • Judgment in favour of Mr Black set aside to the extent of damages above the Brandeis settlement
  • No order for costs as far as the costs of the action are concerned