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Contract – Damages for breach. The claimant entered into a share purchase agreement (SPA) with the first defendant insured by the second defendant. Under the SPA, the claimant acquired from the first defendant the entire issued share capital in Kwik-Fit Insurance Services Ltd (KFIS) for a consideration of £214.75m. The first defendant breached warranties under the SPA and the claimant brought a claim against both defendants. The claim settled and the issue of quantum remained. The claimant claimed that the proper quantum of its warranty claim was £17,635,000, giving rise to a claim under the policy of £12.635m. The second defendant contended that the proper quantum of the warranty claim was £8,792,000 giving rise to a claim under the policy of £3.792m. The Queen's Bench Division held that the claimant's claim against the second defendant was entitled to succeed in the principal sum of £12,63m.
Contract – Damages for breach. The claimant entered into a share purchase agreement (SPA) with the first defendant insured by the second defendant. Under the SPA, the claimant acquired from the first defendant the entire issued share capital in Kwik-Fit Insurance Services Ltd (KFIS) for a consideration of £214.75m. The first defendant breached warranties under the SPA and the claimant brought a claim against both defendants. The claim settled and the issue of quantum remained. The claimant claimed that the proper quantum of its warranty claim was £17,635,000, giving rise to a claim under the policy of £12.635m. The second defendant contended that the proper quantum of the warranty claim was £8,792,000 giving rise to a claim under the policy of £3.792m. The Queen's Bench Division held that the claimant's claim against the second defendant was entitled to succeed in the principal sum of £12,63m.
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