Durlo and Anor v Zuch [2021] JRC 200 (29 July 2021)

Durlo and Anor v Zuch [2021] JRC 200 (29 July 2021)

A generic exclusion of liability in a covering email is insufficient to preclude liability for knowingly untrue answers to pre-contractual enquiries, especially where the answers are within the vendor's own knowledge and are not qualified in the replies themselves. Clear and specific wording is required to exclude such liability; otherwise, the purchaser is entitled to rely on the answers given.

Citation
[2021] JRC 200
Parties
Plaintiff: Plaintiffs; Defendant: Defendant
Jurisdiction
Jersey
Judgment Date
29 July 2021
Procedural Posture
Civil / Application for Reverse Summary Judgment (part 7, Royal Court Rules 2004)
Outcome
application dismissed
Legal Topics
Misrepresentation, Warranties, Pre Contractual Enquiries, Summary Judgment, Exclusion Clauses
Contract Law Property Law Civil Procedure Misrepresentation Warranties Pre Contractual Enquiries Summary Judgment Exclusion Clauses

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Parties

Plaintiffs

Plaintiff

Defendant

Defendant

Procedural Posture

Civil / Application for Reverse Summary Judgment (part 7, Royal Court Rules 2004)

Legal Issues

  1. 1 Whether a covering email excluding guarantee of replies to pre-contractual enquiries precludes liability for knowingly untrue answers.
  2. 2 Whether the SPA and its clauses exclude claims for misrepresentation or breach of warranty based on false replies to enquiries.

Ratio Decidendi

A generic exclusion of liability in a covering email is insufficient to preclude liability for knowingly untrue answers to pre-contractual enquiries, especially where the answers are within the vendor's own knowledge and are not qualified in the replies themselves. Clear and specific wording is required to exclude such liability; otherwise, the purchaser is entitled to rely on the answers given.

Court Disposition

application dismissed

Orders

  • Defendant's application for summary judgment is refused.
  • Proceedings stayed (except as to costs) to enable mediation between the parties.