Damages in lieu of rescission: Operation of section 2(2) of the Misrepresentation Act 1967
For guidance as to how the court goes about exercising its power, see Northcote Housing Association v Dixon [2001] PLSCS 272.
Damages in lieu of rescission: Operation of section 2(2) of the Misrepresentation Act 1967
Q In what circumstances, if any, can you bring an action for damages under the 1967 Act where you cannot establish that the misrepresentation had been negligently made?
A Only where you can persuade the court to exercise its power, under section 2(2), to make an award of damages in place of an order for rescission. Moreover, it seems that this power cannot be exercised if, quite apart from the section, there is any reason why the (equitable) remedy of rescission should be denied: see the observations of the deputy judge in Pankhania v Hackney London Borough Council [2002] EWHC 2441 (Ch); [2002] PLSCS 262, as noted by John Murdoch in What’s the damage? Estates Gazette 29 March 2003, p113.
For guidance as to how the court goes about exercising its power, see Northcote Housing Association v Dixon [2001] PLSCS 272.
