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Lloyd's Maritime and Commercial Law Quarterly

THE APPLICABLE LAW OF MISREPRESENTATION CLAIMS

Morin v. Bonhams & Brooks
The decision of the Court of Appeal in Morin v. Bonhams & Brooks Ltd and Bonhams & Brooks S.A.M. 1 has clarified the approach to determining the applicable law of the tort of negligent misstatement under the Private International Law (Miscellaneous Provisions) Act 1995 (‘‘the 1995 Act’’). In doing so, the court offered a view as to the application of s 12 of the 1995 Act in cases where the parties have ‘‘chosen’’ the law and/or jurisdiction to govern tort claims which may arise out of their relationship.2

The facts

Mr Morin (who resided and carried on business in England) was sent a catalogue by the first defendant, an English company within the Bonhams international auction house (‘‘BBL’’), in respect of the forthcoming annual auction of historic motor cars to be held by Bonhams in Monaco to coincide with the Formula One Grand Prix. The auction itself was organized by the second defendant (‘‘BBM’’), a Monegasque company within the Bonhams group. The catalogue contained a description of 59 historic motor cars for sale at the auction. In particular, the catalogue contained a description of a 1959 Ferrari 410 Superamerica Series III Coupe. The catalogue description included a statement that ‘‘total mileage covered from new by this ultra-rare, virtually one owner Ferrari is a mere 16,626 km’’. The extremely low mileage of the car, as represented, was one of its key selling points. After obtaining the estimate price by telephone from BBL in London, Mr Morin travelled to Monaco to attend the auction and bid for the car. Before entering the auction room, Mr Morin was required to sign a bidder registration form giving his credit card details. The form also stated that the person signing it agreed to be bound by the terms and conditions of sale contained in the auction catalogue. These terms and conditions included cl 9.1, which stated that: ‘‘All transactions to which these Conditions apply and all matters

1. [2003] EWCA Civ 1802; [2004] 1 Lloyd’s Rep 702; aff’g Jonathan Hirst QC (sitting as a Deputy Judge of the Commercial Court) [2003] EWHC 467 (Comm); [2003] All ER (Comm) 36. The main judgment in the Court of Appeal was given by Mance LJ, with whom Butler-Sloss P and Keene LJ agreed.

CASE AND COMMENT

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