The claimant left a valuable necklace with the defendant jewellers for sale. The jewellers fell into financial difficulties, and the director gave the necklace as security for a loan to the company. The jeweller failed to maintain payments on the loan and went into insolvency. Action was now brought against the director personally.
Held: The claimant was entitled to summary judgment. The judge had failed properly to analyse the evidence.
Citations:
[2006] EWCA Civ 923
Links:
Jurisdiction:
England and Wales
Citing:
Cited – Rex v Barnard 1837
A buyer dressed as a member of the University to persuade the seller to give him credit.
Held: Active non verbal conduct can amount to deceit just as much as words can. . .
Cited – Richardson v Silvester 1873
An advertisement was placed in the press offering a farm house to let when the advertiser had no authority to let it.
Held: The action gave rise to an action in deceit founded on the implied representation that he did have authority.
Cited – HIH Casualty and General Insurance Limited and others v Chase Manhattan Bank and others HL 20-Feb-2003
The insurance company had paid claims on policies used to underwrite the production of TV films. The re-insurers resisted the claims against them by the insurers on the grounds of non-disclosure by the insured, or in the alternative damages for . .
Cited – Standard Chartered Bank v Pakistan National Shipping Corporation, Standard Chartered Bank v Pakistan National Shipping Corporation and Others and Another and Others (Nos 2 and 4) HL 6-Nov-2002
Fraudulent Misrepresentation by Company Director
Fraudulent bills of lading had been issued in order to rely upon letters of credit issued by the bank. The director signing the bills sought to avoid personal liability, saying it was the Act of the company. The defendant company also appealed on . .
Cited – The Singer Manufacturing Company v Clark 1880
In the case of an ordinary pledge there is an implied undertaking on the part of the pledgor that the property pledged is his own or that he has the authority of the owner to pledge it, and that it may safely be delivered back to him. . .
Cited – Gluckstein v Barnes; Re Olympia Ltd, ex parte Gluckstein HL 1900
Directors’ hidden profits disclosable
Promoters of a company had acquired a property intending its resale through the sale of shares in the company. In doing so the original directors made a substantial profit which they did not disclose (though it was discoverable). The company became . .
Cited – Brownlie v Campbell; Brownlie v Miller HL 1880
Silence where there is a duty to speak, may amount to a misrepresentation. Lord Blackburn said: ‘where there is a duty or an obligation to speak, and a man in breach of that duty or obligation holds his tongue and does not speak, and does not say . .
Lists of cited by and citing cases may be incomplete.
Contract
Updated: 07 July 2022; Ref: scu.242975