Barry & Anor v Sutherland [2001] ScotCS 268 (23 November 2001)

Barry & Anor v Sutherland [2001] ScotCS 268 (23 November 2001)

The pursuers' claim for loss of their investment in the company is relevant and not too remote, as it directly flows from the fraudulent misrepresentation by the defender. The measure of damages in fraud is not limited to the transaction date value difference but includes all losses directly caused by the inducement, subject to causation and mitigation. An inquiry into the pursuers' loss is appropriate.

Citation
[2001] ScotCS 268
Parties
Pursuer: John Gerard Barry; Pursuer: Mrs Regina Maria Barry; Defender: John Sutherland
Jurisdiction
Scotland
Judgment Date
23 November 2001
Procedural Posture
Civil Delict (fraudulent Misrepresentation) / Interlocutory (relevancy of Pleadings/inquiry Into Loss)
Outcome
Inquiry allowed; case to proceed to Proof before Answer.
Legal Topics
Fraudulent Misrepresentation, Measure of Damages, Remoteness of Damage, Corporate Veil, Investment Loss, Lease and Sale Agreements
Delict Contract Law Commercial Law Fraudulent Misrepresentation Measure of Damages Remoteness of Damage Corporate Veil Investment Loss +1 more

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Parties

John Gerard Barry

Pursuer

Mrs Regina Maria Barry

Pursuer

John Sutherland

Defender

Procedural Posture

Civil Delict (fraudulent Misrepresentation) / Interlocutory (relevancy of Pleadings/inquiry Into Loss)

Legal Issues

  1. 1 Whether the pursuers' claim for loss of investment in a company, induced by fraudulent misrepresentation, is relevant and not too remote to be recoverable in delict.
  2. 2 Whether damages for fraudulent misrepresentation are limited to the difference in value at the transaction date or may include consequential losses such as investment losses.

Ratio Decidendi

The pursuers' claim for loss of their investment in the company is relevant and not too remote, as it directly flows from the fraudulent misrepresentation by the defender. The measure of damages in fraud is not limited to the transaction date value difference but includes all losses directly caused by the inducement, subject to causation and mitigation. An inquiry into the pursuers' loss is appropriate.

Court Disposition

Inquiry allowed; case to proceed to Proof before Answer.

Orders

  • Case put out By Order for arrangements for Proof before Answer regarding pursuers' loss of investment in the company.