In MDW Holdings Limited v James Robert Norvill (& Ors) [2022] EWCA Civ 883, the UK Court of Appeal recognised that a claimant who would not have made a purchase but for the deceit will be entitled to (at least) the difference between the price paid for the property and its actual value. And, if consequential losses were suffered, additional compensation will likely be due.

The decision concerned the acquisition of a private company and focused on the timing of when damages should be assessed in a breach of warranty claim. It will offer guidance to business valuers concerned about the court’s approach to assessing commercial and shareholder damages for deceit.

The court describes different damages standards if the claimant who would have proceeded with the purchase (albeit at a lower price) despite knowing the truth. In those cases, damages are measured by reference to the difference between the price paid and the price that the purchaser would have paid had it known the truth.