Facts[ edit ] The Plymouth, the Devonport and District Tramways company issued a prospectus stating that the company had permission to use steam trams, which would replace their horse-powered trams.
As a result, the company folded. On the whole I acquiesce in the judgment which one of your Lordships is about to move, namely, that the judgment appealed from be reversed. The prospectus predicted that this would result in great savings and profitability for the company.
Derry v Peek also outlined that no duty would be required in relationship to non-fraudulent misrepresentation, without the presence of a contract, a fiduciary relationshipfraud or deceit; but this was later overruled in Hedley Byrne v Heller. That is, for there to be deceit or fraud which is the same it must be shown that a defendant i knows a statement is untrue, or ii has no belief in its truth, or iii is reckless as to whether it is true or false.
My Lords, when I turn to the question of fact I confess I am not altogether satisfied. To access this section, please start your free trial or log in. There are many cases, "where the fact that an alleged belief was destitute of all reasonable foundation would suffice of itself to convince the court that it was not really entertained, and that the representation was a fraudulent one.
The following opinion was edited by LexisNexis Courtroom Cast staff. Named the 9 fastest growing education company in the United States. Nevertheless, if, as I have said, the facts are reconcilable with the innocence of the directors, and with the absence of the mens rea which I consider an essential condition of an action for deceit, the mere fact of the inaccuracy of the statement ought not to be pressed into constituting a liability which appears to me not to exist according to the law of England.
Written by law professors and practitioners, not other law students. The directors issued a prospectus containing a statement that by their special Act the company had the right to use steam power instead of horses. The company applied, honestly believing that they would get permission because it was a mere formality.
Derry v Peek thus validated the perspective of the majority judges in the Court of Appeal in Heaven v Pender.
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Holding and Reasoning Herschell, L. Quimbee is a company hell-bent on one thing: The trial court dismissed the claim because of that testimony. As to the question whether Sir Henry Peek was induced to take his shares by reliance on the misleading statement, I admit that I have very considerable doubt.
Thank you for your support! The defendants testified that they believed the company would be able to obtain absolute rights to use steam or mechanical power. Rule of Law To access this section, please start your free trial or log in.
On the one hand I do not believe that any one can so far analyse his mental impressions as to be able to say what particular fact in a prospectus induced him to subscribe. On the other hand the description of Sir Henry Peek, even now that the question has been pointedly raised and brought to his mind, of what did or did not induce him to take his shares is hardly reconcilable with his having been substantially induced by the statement in question to take them.
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After reading the prospectus, Peek bought shares in the company, thinking the company had an absolute right to use steam and other mechanical power.
Quimbee is one of the most widely used and trusted sites for law students, serving more than 97, law students since The learned judge who saw and heard the witnesses acquitted the defendants of intentional deceit, and although the Court of Appeal held them liable, overruling the decision of the learned judge below, they appear to me to have justified their decision upon grounds which I do not think tenable, namely, that they, the directors, were liable because they had no reasonable ground for the belief which nevertheless it is assumed they sincerely entertained.
And I think such a statement if wilfully made with the consciousness of its inaccuracy would give rise to an action for deceit, provided that damage had been sustained if a person had acted upon a belief induced by such a prospectus.
My Lords, I have so recently expressed an opinion in the Court of Appeal on the subject of actions of this character that I do not think it necessary to do more than say that I adhere to what I there said.
Issue To access this section, please start your free trial or log in. The court of appeals reversed, holding that the defendants did not have any reasonable grounds on which to base their beliefs. A "yes" or "no" answer to the question framed in the issue section; A summary of the majority or plurality opinion, using the CREAC method; and The procedural disposition e.
Read more about Quimbee. The holding and reasoning section includes: The plaintiff having brought an action of deceit against the directors founded upon the false statement.
The Board of Trade afterwards refused their consent to the use of steam power and the company was wound up. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students.Derry v Peek () 14 App Cas Fournier v Canadian National Railway Company  AC ; Milne v Attorney General for the State of Tasmania () 95 CLR ; Suggest a case What people say about Law Notes "I am saving heaps of time with these summaries" - Anonymous, Bond University.
Derry v Peek () LR 14 App Cas Definition "false statement that is made knowingly or without belief in its truth or recklessly as to whether it was true or false.".
Start studying Contract 6- MISREPRESENTATION chapter Learn vocabulary, terms, and more with flashcards, games, and other study tools. Bisset v Wilkinson  AC Fraud was defined by Lord Herschell in Derry v Peek () 14 App Cas He said (at p). Derry v. Peek. House of Lords mint-body.com () Facts.
Henry William Peek (plaintiff) received a prospectus of a train company which stated that due to a new law, the company could begin to use steam or mechanical power in place of the typical horse drawn power. The prospectus predicted that this would result in great savings and.
Derry v Peek () 14 App Cas Tort law – False representation. Facts. In the prospectus released by the defendant company, it was stated that the company was permitted to use trams that were powered by steam, rather than by horses. Derry v. Peek. Facts: The plaintiff brought this action seeking to recover damages against the defendant for an alleged act of deceit.
The plaintiff asserts that they took action based on a statement made by the defendant and as a result of the defendant's false statement, suffered damages.
Peek House of Lords, 14 App. Cas.Download