This is the second and final instalment of our short series on warranty claims which looks at the recent decision of the English High Court in MDW Holdings Ltd v Norvill [2021] EWHC 1135 (Ch). In this case, the court considered breaches of environmental warranties and whether false due diligence responses amounted to fraudulent misrepresentation.
Warranty claims have been the subject of some recent Court decisions and the first instalment of our blog series covered a decision by the Court of Appeal that held a notice of claim under a share purchase agreement (SPA) invalid because it lacked reasonable detail.
The case - MDW Holdings Ltd v Norvill
In October 2015, MDW Holdings Ltd (MDW) acquired the entire issued share capital of G.D. Environmental Services Limited from its sellers.
The operations of GDE's business as a waste management company involved disposing of various types of dry and wet waste. In disposing of wet waste, GDE discharged this into public sewers that were regulated by Dwr Cymru Welsh Water (DCWW). DCWW's consent to discharge was subject to various conditions which, amongst others, included the level of contaminants permitted in the waste. DCWW also required GDE to retain detailed records of all waste discharged and the level of contaminants.
Between 2013 and 2015, sampling carried out by both GDE and DCWW highlighted that certain contaminants contained in the discharged waste exceeded the permitted limit prescribed in DCWW's consent. As a result, DCWW...
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