i-law

Litigation Letter

Fraud-based claims

Satyam Computer Services Ltd v Upaid Systems Ltd CA TLR 27 May

It would only be through using the clearest possible specific language that parties to a settlement agreement would be taken to have excluded fraud-based claims. The principle extends to causes of action of which dishonesty was not a necessary ingredient, but which had been committed dishonestly. Whether a claim in question is based on fraud or involved allegations of dishonesty, very clear and specific language in an agreement is required to settle such claims or exclude their subsequent pursuit, a fortiori, if they are unknown at the time that the settlement agreement is entered into.

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