Fraudulent and negligent misrepresentations were made by telephone and telex in Nassau to Mr Diamond in London. Donaldson J had held that the tort of fraudulent misrepresentation was committed in Nassau when the telexes were sent and from where the representor spoke on the telephone. The plaintiff appealed.
Held: The appeal succeeded. The tort of deceit, when conducted over a telephone, takes place ‘where the message is received – wherever it is heard on the telephone’.
Lord Denning MR said: ‘In the case of fraudulent misrepresentation it seems to me that the tort is committed at the place where the representation is received and acted upon; and not the place from where it was sent. Logically, it seems to me, the same applies to a negligent misrepresentation by telephone or by telex. It is committed where it is received and acted upon.’
Stephenson LJ said: ‘But it is settled law that A’s misrepresentation, however fraudulent and morally wrong, does not become tortious until B not merely receives it but acts upon it . . The damage may be suffered when and where B acts or begins to act upon the representation, but it may be suffered at a later time or at a different place. Although A’s part of the tort is committed when and where he speaks or telexes or writes the misrepresentation, B’s part is needed to complete the tort by acting upon the representation, and the tort is committed, in my judgment, when and where he does so act. ‘
Judges:
Lord Denning MR, Stephenson LJ, Shaw LJ
Citations:
[1979] 1 All ER 561, [1979] 1 QB 333
Jurisdiction:
England and Wales
Citing:
Cited – Briess v Woolley HL 1954
A fraudulent misrepresentation made in the course of pre-contractual discussions by a shareholder in a company. He was subsequently authorised by the other shareholders to continue the negotiations as their agent, and in due course a contract was . .
Cited by:
Cited – VTB Capital Plc v Nutritek International Corp and Others SC 6-Feb-2013
The claimant bank said that it had been induced to create very substantial lending facilities by fraudulent misrepresentation by the defendants. They now appealed against findings that England was not clearly or distinctly the appropriate forum for . .
Lists of cited by and citing cases may be incomplete.
Torts – Other
Updated: 07 October 2022; Ref: scu.471976