From: Neil Foster <neil.foster@newcastle.edu.au>
To: obligations@uwo.ca
Date: 12/02/2014 22:59:27 UTC
Subject: [Spam?] ODG: Continuing Negligent misrepresentation in UKSC

Dear Colleagues;
Very interesting decision from the UKSC in Cramaso LLP v Ogilvie- Grant, Earl of Seafield & Ors (Scotland) [2014] UKSC 9 (12 February 2014) 
 http://www.bailii.org/uk/cases/UKSC/2014/9.html  on liability for a negligent misrepresentation which induced entry into a contract. The “directing mind” of the LLP concerned had received a misleading and negligent quote about “grouse capacity” from the Earl, and later, as part of continuing negotiations, the newly formed LLP enter into a “grouse shooting lease” (or whatever it was called!) The issue was whether the contract could be terminated and damages awarded, because the representation had not been directly made to the (then nonexistent) LLP. Sensibly the Court ruled in favour of the Partnership, as they said that the representation had continuing effect on the mind of the main person in the LLP. (I was grateful for Lord Toulson’s “translation” of the Scots legal terms at paras [47] and [48]!) There was also clarification of the effect of a Scottish law reform provision which seemed to have previously been misinterpreted.
Regards
Neil

NEIL FOSTER
Associate Professor
Newcastle Law School
Faculty of Business and Law
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