(1885) JELR 80163 (CA)    
Court of Appeal  ·  2 Mar 1885 ·  United Kingdom
Other Citations
29 Ch D 459; 65 LJ Ch 650; 53 LT 369; 50 JP 52; 33 WR 911; 1 TLR 326
(1885) 29 Ch D 459
Cotton, Bowen and Fry LJJ
Core Terms Beta
faith of these statements
financial state of the company
mortgage money
objects of the issue of the debentures
mere fact
false statement
true objects of the defendants
state of a man
action of deceit
consideration of these statements
implied allegation
strong evidence of their financial difficulties
second mortgage
leasehold property of the company
untrue statement
statement of an intention
learned judge
statement of fact
state of his digestion
lump sum
board meetings
large sums
cotton lj
real object of the issue of debentures
first mortgage
careful consideration
own mistake
alleged misrepresentations
such circumstances
misrepresentation of the defendants
real question
statement of intention
rest of his race
great financial difficulties
reasonable grounds
question remains

COTTON LJ:(reading the leading judgment)

This case has been very fully and ably argued. It is what is called an action of deceit, the plaintiff alleging that statements were made by the defendants which were untrue, and that he had acted on the faith of these statements so as to incur damage for which the defendants are liable. In order to sustain such an action the plaintiff must show that the defendants intended that people should act on the statements, that the statements are untrue in fact and that the defendants knew them to be untrue, or made them under such circumstances that the court must conclude that they were careless whether they were true or not.

The statements in question were made in a prospectus or circular issued by the defendants for the purpose of getting subscribers to a loan, and the plaintiff alleges that he understood from them that the advances were to be secured on leasehold property of the company. In my opinion there was no good ground for his so believing. T…

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