Not Such a Wonderful Thing? MDW Holdings v Norvill: Hindsight and the Assessment of Damages

October 2022
Region: Europe

Where the seller of a company gives a false warranty, but the risk in question never materialises, how should compensation be assessed? Separately, should it make a difference if the buyer would still have proceeded with the transaction anyway, even if they knew the true state of affairs?

This article considers the recent Court of Appeal decision in MDW Holdings Limited v Norvill, which addressed these issues. As will be seen, these are legal questions with discernible practical consequences for those buying and selling companies and business assets.