Can hindsight be used when assessing losses in a breach of warranty claim?
By Jonathan Grigg
In Ageas (UK) Ltd v (1) Kwik-Fit (GB) Ltd (2) AIG Europe Ltd , where Shoosmiths acted for the claimant, the High Court examined principles relevant to the permissibility of using hindsight to value a company for the purposes of a warranty claim.
The case concerned a breach of warranty claim in relation to a share purchase agreement. Ageas entered into the agreement to purchase the full share capital of Kwik-Fit Insurance Services for £215m. Ageas valued the company on the basis of the accounts provided by Kwik-Fit.
Kwik-Fit gave warranties that the audited accounts were prepared in accordance with GAAP, and gave a true and fair view of the assets, liabilities and financial position of the company and its subsidiaries, and that it did not materially misstate the assets or liabilities. At the same time as entering into the agreement, Ageas entered into a warranty and indemnity policy with AIG to protect it against losses resulting from breaches of warranty in excess of a £5m cap…
Click on the link below to read the rest of the Shoosmiths briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
The SRA’s new training regime for all aspirant and qualified solicitors is expected to come into force from November 2016.
On 26 January 2015, two individuals entered pleas of not guilty to criminal cartel charges brought under the Enterprise Act 2002.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…