Erinaceous has settled a £92,000 breach of warranty claim that it brought against the directors of Berkeley Simmons Davis, a leisure agency it purchased in 2004.
Last September, the property services company filed a High Court claim for £92,335 of the price it paid in July 2004 to Jeremy Simmons and Emma Davis for the London-based leisure specialist.
Under the share purchase agreement made between the parties, Simmons and Davis allegedly warranted that the net asset value of the agency was £25,000 and were paid an initial consideration of £130,000 in shares and cash.
However, when completion accounts were drawn up in October 2004, Erinaceous claimed that the net asset value was in fact – £72,748.
Accordingly, once bonuses and directors’ loan accounts were taken into account there was an alleged shortfall from the warranted amount of £92,335 – a sum that Erinaceous claimed from Simmons and Davis.
Simmons and Davis both left Erinaceous in 2006, Simmons joining CBRE as a senior director charged with expanding CBRE’s leisure business while