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Case law: Notice disclaiming liability for misrepresentations on a website was effective

Businesses should carefully draft disclaimers limiting or excluding liability for representations they make (whether on a website or elsewhere) before signing a contract to ensure they are effective, a recent ruling makes clear.

Legal Alert

This update was published in Legal Alert - March 2017

Legal Alert is a monthly checklist from Atom Content Marketing highlighting new and pending laws, regulations, codes of practice and rulings that could have an impact on your business.

A financial company bought debts from a bank after the bank had posted an 'investor presentation' on its website which contained inaccurate representations about the debts.

The Court of Appeal found that the bank deliberately made the presentation available to the company on its website, so owed the company a duty of care in relation to the information in it.

However, the presentation contained a disclaimer notice stating that the bank could not guarantee the accuracy of the information in it, and that the bank made no warranties or representations regarding its accuracy.

The Court of Appeal ruled that it was open to the bank to exclude or limit its liability for representations by notice, provided the notice was in the document containing the misrepresentation - which it was.

The financial company could not therefore claim compensation for the inaccurate representations.

Operative date

  • Now

Recommendation

  • Businesses should treat any disclaimers limiting or excluding liability for representations (whether on a website or elsewhere) made before entering into a contract with caution, and ensure they check whether the disclaimers are effective

Case ref: Taberna Europe CDO II plc v. Selskabet AF 1 [2016] EWCA Civ 1262

Disclaimer: This article from Atom Content Marketing is for general guidance only, for businesses in the United Kingdom governed by the laws of England. Atom Content Marketing, expert contributors and ICAEW (as distributor) disclaim all liability for any errors or omissions.