Success in fraudulent misrepresentation trial

Christopher Bond of 3VB (instructed by White & Case LLP) acted for the successful first defendant in the Commercial Court trial of a deceit claim arising out of a private equity investment: Damazein Global Investments Ltd v Salamanca Capital Ltd and another.

Christopher’s client, a private merchant bank, was the arranger on a deal to invest in a US-based electronics recycling business. The claimant investor alleged that Salamanca and one of its then directors (the second defendant) had induced it to invest US$3m (which was lost) on the basis of knowingly false statements about the sums already raised and about due diligence undertaken by Salamanca on the target company.

The trial began on 2 October 2019, listed for 10 days before HHJ Pelling QC (sitting as a Judge of the High Court). After 2 days of evidence by the claimant’s witnesses, the claimant discontinued its claim and agreed to pay the defendants’ costs of the proceedings on the indemnity basis.