DamagesContribution - entitlement - purchaser of company claiming damages from vendor for breach of warranty - vendor seeking contribution from purchasers - accountants liable to purchaser in respect of same damage Eastgate Group Ltd v Lindsey Morden Group Inc and Smith & Williamson (part 20 defendant): CA (Lords Justice Potter and Longmore): 10 October 2001The claimant purchased a company from the defendant.

The company was worth substantially less than expected and the claimant sued the vendor for damages for breach of warranty.

The vendor claimed a contribution under the Civil Procedure Rules 1998, part 20 from the claimant's accountants on the basis that the accountants were liable to the claimant in respect of the same damage.

The judge held that the defendant and the accountants were not capable of being liable for the same damage within the meaning of section 1 of the Civil Liability (Contribution) Act 1978 and struck out the claim.

The defendant vendor appealed.

Anthony Boswood QC, Bankim Thanki and Henry King (instructed by Linklaters) for the defendant vendor; John Martin QC and Jonathan Seitler (instructed by Barlow Lyde & Gilbert) for the accountants.Held, allowing the appeal, that the judge had erred in holding that, if the damages recoverable by the claimant from its accountants came to be assessed, it would be wrong to ignore the value of the warranties; that the valuation cases were not in point when deciding whether any claim made against a person in breach of contract fell to be reduced by any payment made by a person liable for breach of professional duty; that the defendant, if liable, had sold a company worth less than the value contracted and the accountants, if liable, had caused the claimant to buy a company worth substantially less than the price paid; and that the damage suffered by the claimant was the same damage, even if the damages recoverable might be different.