Read the full judgment text of CACV 000208/1999 on BabelCite. This Court of Appeal judgment was delivered on 11 November 1999 before Godfrey JA, Rogers JA, Seagroatt J.
Civil procedure – striking out – statement of claim – negligence – negligent misstatement – economic loss – directors' personal liability – special relationship – assumption of personal responsibility – whether statement of claim discloses a reasonable cause of action – plaintiff is shareholder of company – defendants are four directors who issued an announcement reassuring shareholders amid rumours of financial losses – announcement contained no express assumption of personal responsibility – whether defendants assumed personal responsibility for the contents – held, claim adequately pleaded and not bound to fail – absence of express responsibility statement is a factor for trial but does not warrant striking out – directors' liability for negligent misstatements requires assumption of personal responsibility beyond mere authorisation or procurement – appeal allowed – paragraphs 7 to 14 of statement of claim reinstated – following Evans v. Spritebrand [1985] 1 W.L.R. 317 and PLG Research Ltd. v. Ardon International Ltd [1993] F.S.R. 197.
Legal issues: Whether the statement of claim adequately pleads that the directors assumed personal responsibility for the announcement
Outcome: Appeal allowed; the order of Waung J. striking out paragraphs 7 to 14 of the statement of claim is set aside.
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