In my judgment the wording of the subsection is clear: the person making the innocent misrepresentation shall be so liable, i.e. Royscot Trust Ltd v Rogerson [1991] EWCA Civ 12 is an English contract law case on misrepresentation.It examines the Misrepresentation Act 1967 and addresses the extent of damages available under s 2(1) for negligent misrepresentation.. One at least, Chesneau v. Interhome Ltd (1983) 134 N.L.J. Negligence is a failure to exercise appropriate and/or ethical ruled care expected to be exercised amongst specified circumstances. 97 Ibid at 1063. Founded over 20 years ago, vLex provides a first-class and comprehensive service for lawyers, law firms, government departments, and law schools around the world. For negligent misrepresentation, see s.2(1) Misrepresentation Act 1967 and Royscot Trust v. Rogerson, 1072. an expert until they receive help on their questions. In an article on the 1967 Act in 30 M.L.R. 439, note 63 and in McGregor on Damages (15th ed.) The rule states that, in a tort case, the unexpected frailty of the injured person is not a valid defense to the seriousness of any injury caused to them. 98, 140 A judge of the Court of Appeal of New South Wales. It examines the Misrepresentation Act 1967 and addresses the extent of damages available under s 2(1) for negligent misrepresentation. At the beginning of May 1987 the first defendant Mr Andrew Jeffrey Rogerson ("the Customer") agreed with the Dealer to buy on hire-purchase a second-hand Honda Prelude motor-car for the. Updated daily, vLex brings together legal information from over 750 publishing partners, providing access to over 2,500 legal and news sources from the worlds leading publishers. It examines the Misrepresentation Act 1967 and addresses the extent of damages available under s 2(1) for negligent misrepresentation. Opines that the burden of disproving is quite onerous. Reference may also be made to Lord Steyns judgment: ibid at 10741075. Negligent Misrepresentation: s 2(1) MA 1967: case where the CoA held that it was a negligent misrepresentation under MA 67 s 2(1). Once the transaction is looked at in this way the authorities on which Mr Kennedy relied to support this submission, being all concerned with misrepresentations leading to the acquisition of chattels, can be seen to be of little assistance. Subscribers are able to see the revised versions of legislation with amendments. [4] [5] (S.2 does not specify how "damages in lieu" should be determined, and interpretation of this point is up to the courts). The Finance Companys cause of action against the Dealer is, based on section 2(1) of the Misrepresentation Act 1967. The car was then said to be worth at least 6,325. The case is concerned with the question of "breaking the chain of causation", or novus actus interveniens. 1. The court found that the auditor had acted negligently and unlawfully, and so established factual causation. Honda Centre Ltd was acquired on hire purchase a used car by the claimant, a finance company, Royscot Trust Ltd. Watts v. Spence was disapproved by this court in Sharneyford Supplies Ltd v. Edge [1987] Ch. The reasoning of the decision has been much criticised by academic lawyers such as Treitel and Hooley, partly for its overly literal interpretation of the statute, and for its dubious finding of fact that a deliberately false document was made negligently, rather than fraudulently. In the course of his judgment Eveleigh L.J. As was said by the Privy Council in its judgment in, So I turn to the issue on this appeal which the Dealer submits raises a pure point of law: where (a) a motor dealer innocently misrepresents to a finance company the amount of the sale. That loss seems to me to have resulted directly from the entry into the two contracts by the Finance Company. students are currently browsing our notes. You can use this page to start a discussion with others about how to improve the "Royscot Trust Ltd v Rogerson" page. This submission again falls into the error of treating the transaction according to its technicalities: that the Finance Company was interested in purchasing the car. (London: Sweet & Maxwell, 2015 13th edition), Treitel, G.H and E. Peel The law of contract. Royscot Trust Ltd v Rogerson. It does so in the usual way, that is by purchasing the car which is the subject of the sale from the dealer and then entering into a hire-purchase agreement with the customer. As against the Customer the judge assessed the Finance Company's damages as 5,504.16 (the balance of 8,278.92 less the instalments paid of 2,774.76) and judgment in that sum was entered against him. 238 p.5): [Damages] should be assessed in a case like the present one on the same principles as damages are assessed in tort. The plaintiff and the respondent to this appeal, Royscot Trust Ltd ("the Finance Company") is a company which finances hire-purchase sales. Before the judge counsel for the Finance Company submitted that its loss was the difference between the sum of 6,400 which it paid to the Dealer and the sum of 2,774.76 paid by the Customer, viz. It was that assessment of damages which came before Judge Barr on 22nd February 1990. Here is the definition, explanation, description, or the meaning of each significant on which you need information, and a list of their associated concepts as a glossary. paras. Doyle -v- Olby (Ironmongers) Ltd was an appropriate way of assessing damages for an action under the Act, and damages are calculated on the basis of fraud.A client misled into an investment is entitled to the measure of damages he would receive for a fraud. Bailiiif(typeof ez_ad_units != 'undefined'){ez_ad_units.push([[336,280],'swarb_co_uk-medrectangle-4','ezslot_7',113,'0','0'])};__ez_fad_position('div-gpt-ad-swarb_co_uk-medrectangle-4-0'); Applied Doyle v Olby (Ironmongers) Ltd CA 31-Jan-1969 The plaintiff had been induced by the fraudulent misrepresentation of the defendant to buy an ironmongers business for 4,500 pounds plus stock at a valuation of 5,000 pounds. Available in English, Spanish, Portuguese, Japanese, Chinese, French, German, Italian, Polish, Dutch, Russian, Arabic, Hindi, Swedish, Ukrainian, Hungarian, Catalan, Czech, Hebrew, Danish, Finnish, Indonesian, Norwegian, Romanian, Turkish, Vietnamese, Korean, Thai, Greek, Bulgarian, Croatian, Slovak, Lithuanian, Filipino, Latvian, Estonian and Slovenian. Royscot Trust Limited and (1) Andrew Jeffrey Rogerson (2) Maidenhead Honda Centre Limited MR M.K.I. In the controversial decision of Royscot Trust v Rogerson, 5 the English Court of Appeal held that the measure of damages under a s.2 (1) claim is the same as that in a claim for fraudulent misrepresentation in the tort of deceit. LORD JUSTICE RALPH GIBSON 141 See K R Handley, Exclusion Clauses for Fraud(2003) 119 LQR 537. This was the conclusion to which Walton J. came inF & B Entertainments Ltd v. Leisure Enterprises Ltd(1976) 240 E.G. 523 Whilst recognising that this Court is bound by the Court of Appeal decision in, see Doyle v. Olby [1969] 2 QB 158. Importantly, however, the civil wrong must be an actionable one, resulting in liability on the part of the wrongdoer or tortfeasor. Accountants can be sued for negligence or malpractice in the performance of their duties, and for fraud. Very few judges made decisive statements This website uses cookies to ensure you get the best experience on our website. In his book on the Law of Contract (7th ed.) Google Play, Android and the Google Play logo are trademarks of Google Inc. Royscot Trust Ltd v Rogerson and English contract law, Royscot Trust Ltd v Rogerson and Mechanisms of the English common law, Royscot Trust Ltd v Rogerson and Misrepresentation, Royscot Trust Ltd v Rogerson and Misrepresentation Act 1967, https://en.wikipedia.org/wiki/Royscot_Trust_Ltd_v_Rogerson, Creative Commons Attribution-ShareAlike License. See also the decision of Sir Douglas Franks Q.C. In the English Court of Appeal case of Royscot Trust Ltd v Rogerson, a cross-check is not likely to be helpful and is conducive to over-elaboration both in the evidence and in argument. management, Specifically, deceit requires that the tortfeasor. Expert is a qualified tutor holding a degree in their subject domain to solve doubts asked by students. In, appears to be that the tortious measure is the correct one. Accordingly in making its claim for damages the Finance Company relies on innocent misrepresentation under section 2(1) of the Misrepresentation Act 1967. into a hire-purchase agreement with the purchaser which it would not have done if it had known the true facts; and (c) the purchaser thereafter dishonestly disposes of the car and defaults on the hire-purchase agreement; can the finance company recover all or part of its losses on the hire-purchase agreement from the motor dealer? The plaintiff and the respondent to this appeal, Royscot Trust Ltd (the Finance Company) is a company which finances hire-purchase sales. subsection reads (so far as relevant) as follows: Where a person has entered into a contract after a misrepresentation has been made to him by another party thereto and as a result thereof he has suffered loss, then, if the person making the misrepresentation would be liable to damages in respect thereof had the misrepresentation been made fraudulently, that person shall be so liable notwithstanding that the misrepresentation was not made fraudulently. X was to repay P through instalments, but defaulted and wrongfully sold the car. Royscot Trust Ltd v Rogerson. The Finance Company accepts that it will have to give credit for any sums that it may receive from its judgment against the Customer. The plaintiff and the respondent to this appeal, Royscot Trust Ltd ("the Finance Company") is a company which finances hire-purchase sales. Dr Cherry was considered a rescuer and his respective rights remained. The damage suffered was, I think, clearly foreseeable. This was because the finance company implemented a policy which they would refuse a hire purchase transaction unless the deposit paid by the client represents at least 20% of the total price. Shortly after the purchase, he discovered the fraud and started the . 709 and Jarvis v. Swans Tours [1973] Q.B. Advanced A.I. damages under S2(1) of the Misrepresentation Act 1967 so increases the Honda Centre Ltd was acquired on hire purchase a used car by the claimant, a finance company, Royscot Trust Ltd. That was not the reality: the Finance Company was interested in receiving the totality of the instalments from the Customer. into a hire-purchase agreement with the purchaser which it would not have done if it had known the true facts; and (c) the purchaser thereafter dishonestly disposes of the car and defaults on the hire-purchase agreement; can the finance company recover all or part of its losses on the hire-purchase agreement from the motor dealer? technology developed exclusively by vLex editorially enriches legal information to make it accessible, with instant translation into 14 languages for enhanced discoverability and comparative research. LORD JUSTICE BALCOMBE 1 in two cases in the Court of Appeal Gosling v. Anderson [1972] E.G.D. Mr Kennedys next submission was that the Customers wrongful sale of the car wasnovus actus interveniens. sitting as a Deputy High Court Judge inMcNally v. Welltrade International Ltd[1978] I.R.L.R. 96 Ibid at 10601061. Royscot Trust Ltd V Rogerson - Facts. Are you a Law student, legal professional, or researcher seeking to bolster your understanding of a specific subject matter? The Finance Company has a policy that it will not accept a hire-purchase transaction unless the deposit paid represents at least 20% of the total cash price. The core concept of negligence is that people should exercise reasonable care in their actions, by taking account of the potential harm that they might foreseeably cause to other people or property. Royscot Trust Ltd v Rogerson [1991] EWCA Civ 12 is an English contract law case on misrepresentation. para. Chapman appealed the case to the High Court of Australia on August 8, 1961 but it was dismissed as the results of his negligence were deemed reasonably foreseeable. In the English law of negligence, the acts of the claimant may give the defendant a defence to liability, whether in whole or part, if those acts unreasonably add to the loss. Rogerson then started to pay the installments; nevertheless, he had cashflow Chitty on Contracts (26th ed.) 439, note 63 and in McGregor on Damages (15th ed.). 2016, December 2016, Singapore Academy of Law Annual Review Nbr. The defendant stated the price of the car was 8,000 and the deposit paid was . the position P would be in if the misrepresentation had never been made) or the contractual one (i.e. 665 at 761-769 per Slade L.J. 439 says: it is doubtful whether the rule that the plaintiff may recover even unforeseeable losses suffered as the result of fraud would be applied; it is an exceptional rule which is probably justified only in cases of actual fraud.. (6) See more Misrepresentation A concept of English law, a misrepresentation is an untrue or misleading statement of fact made during negotiations by one party to another, the statement then inducing that other party into the contract. 364: seem to me to cast no doubt upon that part of the reasoning of the Court of Appeal. It illustrates the damages available for deceit. 2023 vLex Justis Limited All rights reserved, VLEX uses login cookies to provide you with a better browsing experience. COURT OF APPEAL (CIVIL DIVISION) With all respect to the various learned authors whose works I have cited above, it seems to me that to suggest that a different measure of damage applies to an action for innocent misrepresentation under the section than that which applies to an action for fraudulent misrepresentation (deceit) at common law is to ignore the plain words of the subsection and is inconsistent with the cases to which I have referred. Because the Finance Company were induced to pay an extra 1600 that was the relevant loss suffered by the Finance Company. Professor Furmston in Cheshire Fifoot and Furntstons Law of Contract (11th ed.) Accordingly I am satisfied that, at the time when the Finance Company entered into the agreements with the Dealer and the Customer, it was reasonably foreseeable that the Customer might wrongfully sell the car. This is known as the fiction of fraud and also extends to tortious liability. 341 is a decision of this court. KENNEDY, instructed by Messrs Barrett & Thomson (Slough), appeared for the Appellant (Second Defendant). by Atiyah and Treitel, The measure of damages in the statutory action will apparently be that in an action of deceit But more probably the damages recoverable in the new action are the same as those recoverable in an action of deceit.. As against the Customer the judge assessed the Finance Company's damages as 5,504.16 (the balance of 8,278.92 less the instalments paid of 2,774.76) and judgment in that sum was entered against him. However, if the Dealer should reasonably have foreseen the possibility of the wrongful sale of the car, then that is a strong indication that the sale did not break the chain of causation. Most of these decisions are at first instance and will be found in Chitty on Contract (26th ed.) Even if the defendant can be shown to have acted negligently, there will be no liability if some new intervening act breaks the chain of causation between that negligence and the loss or damage sustained by the claimant. An alternative to lists of cases, the Precedent Map makes it easier to establish which ones may be of most relevance to your research and prioritise further reading. in two cases in the Court of Appeal Gosling v. Anderson[1972] E.G.D. Held: The replies were not dishonest as the form could have been misconstrued. This subsection reads (so far as relevant) as follows: "Where a person has entered into a contract after a misrepresentation has been made to him by another party thereto and as a result thereof he has suffered loss, then, if the person making the misrepresentation would be liable to damages in respect thereof had the misrepresentation been made fraudulently, that person shall be so liable notwithstanding that the misrepresentation was not made fraudulently".
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