Business Sale Fraud Expert Witness UK

Where warranty breach was deliberate (the seller knew the warranty was untrue), the buyer may bring a deceit claim alongside or instead of a warranty claim. The deceit measure of loss (Doyle v Olby: all actual direct losses) is wider than the warranty diminution in value measure.

W&I policies typically exclude fraud, so fraud claims run against the seller directly rather than through the insurer. This makes expert evidence on the seller's knowledge and the true financial position particularly important.

A buyer typically pleads both warranty breach and fraud in the alternative. If fraud is established, the wider Doyle v Olby loss measure applies. If fraud is not established but warranty breach is, the diminution in value measure applies.

The expert witnesses in each scenario may be the same or different depending on the accounting and valuation issues involved. Fraud claims require additional evidence of the seller's knowledge and intent.