Dear Colleagues,

Members may be interested in today's Court of Appeal decision in Parabola Investments Ltd & Ors v Browallia Cal Ltd & Ors [2010] EWCA Civ 486 http://www.bailii.org/ew/cases/EWCA/Civ/2010/486.html. The case involves a claim in deceit by one of the world's most successful traders against a broker who was fraudulent and described by the judge as having been "exposed not just as a fraudster throughout the relationship between Tangent and Man but also as a persistent and inveterate liar in almost everything he said".

It was not disputed that the claimant was able to recover the difference in the size of their fund available for investment (over £3 million), plus interest. However, the claimant argued that their loss was greater still: "first, from its lost opportunity to have traded with the fund as it would otherwise have done during the Man period (referred to during the appeal as stage 1), and secondly, from its lost opportunities for trading during the period from the termination of its relationship with Man until the trial (stage 2) resulting from the depletion of its trading fund."

It is therefore a claim for the loss of availability of the fund for investment, and loss of a chance. The claim succeeded (the appeal was dismissed) and the Court of Appeal draw on Sempra Metals v IRC (familiar to restitution lawyers in their analysis. It seems to me to be an important case.

Best wishes,

James

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James Lee

Lecturer

Director of the LLB Programme

Birmingham Law School

University of Birmingham

Edgbaston

Birmingham

B15 2TT, United Kingdom

 

Tel: +44 (0)121 414 3629

E-mail: j.s.f.lee@bham.ac.uk