116 Cardamon Ltd v MacAlister and another

Contract – Warranty. The claimant company's claim succeeded, in part, in a dispute concerning the valuation of a company that it had acquired through a share purchase agreement. The Commercial Court held that there had been breaches of warranty regarding certain of the company's accounts. Among other things, the accounts had underrated the company's liability to pay claims under a scheme, and there had been a failure to disclose a change in the method of remunerating insurance brokers which had occurred part way through the 2013 financial year, which had allowed the company to defer accounting for a large amount of that expense.

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