MAN AG's original damages claim was for 343 million pounds ($611.6 million) and the company would apply for an interim award in advance of a final decision on the amount, MAN AG's counsel Dominic Kendrick QC told the court. The case centred on fraud perpetrated at UK truck manufacturer ERF, which MAN AG had bought for 86 million pounds in March 2000 from Canada's Western Star Trucks. Western Star was subsequently bought by Freightliner Limited.
The court backed MAN AG's claim that ERF's financial controller, Stephen Ellis, had defrauded MAN AG in their purchase through an accounting scam he had carried out over several years.
"(MAN) was induced to purchase ERF by fraudulent statements made by Mr Ellis at a time when he was acting on behalf of Western Star to further the negotiations between them," Lord Justice Moore-Bick said in his ruling.
"As a result Western Star became vicariously liable to MAN for all the losses directly caused to it by entering into the transaction."