What test of damages should apply in a case involving concurrent causes of action, asks Helen Mulcahy
Wellesley Partners (WP), a small but successful firm of head hunters in the investment banking sector, brought a successful negligence claim against Withers arising out of changes to WP’s LLP agreement, which was to allow for the admission of new investors who were to become members of the partnership (see Wellesley Partners LLP v. Withers LLP [2015] EWCA Civ 1146, [2015] All ER (D) 146 (Nov)). One of the investors, Addax, was to make a capital contribution of US$5,000,000 in return for a 25% interest. An element of the initial terms was that Addax would be entitled to exercise an option to withdraw half its capital contribution, after 42 months.
However, for reasons unknown, the junior solicitor who drafted the changes to the LLP agreement inserted that the option to withdraw was exercisable within the first 41 months. Twelve months following the investment, Addax exercised the option to withdraw half its capital contribution.
At the beginning of 2008,
