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Legal Update

Liability of company directors for damages in deceit - useful lessons from Inter Export LLC v Townley and Anor

October 2018
Mayer Brown Legal Update

In 2012, Inter Export LLC, a supplier of sunflower oil registered in Ukraine, entered into a contract to sell oil to a UK-based company. In so doing, the supplier relied upon continuing representations made by a director of the purchasing company that the company would be able to pay for the oil. The oil was duly supplied, but not paid for.

Following liquidation of the purchaser, the supplier brought proceedings against the purchaser's directors for damages in deceit arising out of the representations. Inter Export was successful in its claim against one of the directors and was awarded damages based on the market value of the sunflower oil.

In its 21 September 2018 decision, [2018] EWCA Civ 2068, the Court of Appeal dismissed the director’s appeal and upheld the earlier decision that damages based on the market value of the commodity should be awarded. The director’s representations were found to have been continuing and relied upon by the supplier up until the time the oil was dispatched for delivery.


  • Mark Stefanini
    T +44 20 3130 3704
  • Catherina Yurchyshyn
    T +44 20 3130 3962
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