Breaching warranties

Leave has been given by the House of Lords for an appeal in the case of Senate Electrical Wholesalers v STC Submarine Systems & anor. The case centres on a decision by Mr Justice May in December 1996 in which he awarded Senate just over u7.5m for a claim involving breach of warranties on the sale of a business. That decision was set aside by the Court of Appeal in June last year. Now, in the pending appeal, the Law Lords will be asked to decide on issues including the method of assessment of damages in such cases and whether the buyer of a business has to demonstrate reliance on a particular warranty in such cases in order to recover damages for breach of it.