The claimants were to be awarded damages, having been fraudulently induced to purchase shares. The defendant claimed that the increase in the value of the shares which had subsequently occurred should be taken to reduce the damages awarded because the claimant had opted to retain the shares.
Held: The interests of justice did not allow ma defendant to reduce the level of damages awarded in this situation. The damages were for a breach of warranty. The compensatory principle required the damage to be assessed at the date of the loss. He had adopted the transaction by retaining the shares, but the measure was the excess of consideration paid over the true value together with consequential expenses. The expenses and harassment suffered by the claimant at the hands of the Respondent were substantial. It was the responsibility of the defendants to establish that the claimants had acted imprudently in retaining the shares. That had not happened.
England and Wales
Cited – Smith New Court Securities Ltd v Scrimgeour Vickers HL 21-Nov-1996
The defendant had made misrepresentations, inducing the claimant to enter into share transactions which he would not otherwise have entered into, and which lost money.
Held: A deceitful wrongdoer is properly liable for all actual damage . .
Cited – Standard Chartered Bank v Pakistan National Shipping Corporation and Another CA 17-Dec-1996
Lists of cited by and citing cases may be incomplete.
Updated: 21 August 2021; Ref: scu.178512