{"id":3796,"date":"2025-01-15T05:59:50","date_gmt":"2025-01-15T05:59:50","guid":{"rendered":"https:\/\/fawyerz.in\/judgments\/?p=3796"},"modified":"2025-03-12T16:03:36","modified_gmt":"2025-03-12T10:33:36","slug":"derry-v-peek-1889-case-summary","status":"publish","type":"post","link":"https:\/\/fawyerz.in\/judgments\/torts-law\/derry-v-peek-1889-case-summary\/","title":{"rendered":"Derry V. Peek 1889 (Case Summary)"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"3796\" class=\"elementor elementor-3796\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-917020f elementor-section-full_width elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"917020f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5aa9190\" data-id=\"5aa9190\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-0360c7f elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no\" data-id=\"0360c7f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-f71d46a\" data-id=\"f71d46a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d818b36 elementor-widget elementor-widget-heading\" data-id=\"d818b36\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Derry V. Peek 1889 (Case Summary)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e246dd3 elementor-widget elementor-widget-image\" data-id=\"e246dd3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1312\" height=\"736\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889.jpg\" class=\"attachment-1536x1536 size-1536x1536 wp-image-3798\" alt=\"Derry V. Peek 1889\" srcset=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889.jpg 1312w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889-300x168.jpg 300w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889-1024x574.jpg 1024w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889-150x84.jpg 150w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889-768x431.jpg 768w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Derry-V.-Peek-1889-600x337.jpg 600w\" sizes=\"(max-width: 1312px) 100vw, 1312px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0d9ee86 elementor-widget elementor-widget-text-editor\" data-id=\"0d9ee86\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">This case established the principle that liability for fraudulent misrepresentation arises only when a false statement is made knowingly, without belief in its truth, or recklessly, without caring whether it is true or false.<\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/fawyerz.in\/judgments\/torts-law\/derry-v-peek-1889-case-summary\/#Facts_of_Derry_v_Peek\" >Facts of Derry v Peek\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/fawyerz.in\/judgments\/torts-law\/derry-v-peek-1889-case-summary\/#Issues_framed\" >Issues framed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/fawyerz.in\/judgments\/torts-law\/derry-v-peek-1889-case-summary\/#Judgment_of_Derry_v_Peek\" >Judgment of Derry v Peek<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Facts_of_Derry_v_Peek\"><\/span><span style=\"color: #993300;\"><b>Facts of Derry v Peek\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The defendant company issued a prospectus claiming that their tramways would operate using steam power, subject to obtaining necessary government approval.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The company honestly believed that government approval was a mere formality, but their application was ultimately denied.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Relying on this prospectus, Derry, the plaintiff, purchased shares in the company and suffered financial loss when the company failed to implement the promised system.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Derry sued for fraudulent misrepresentation, alleging that the statement in the prospectus was false and misleading.<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Issues_framed\"><\/span><span style=\"color: #993300;\"><b>Issues framed<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether\u00a0 a false statement made in honest belief of its truth constitutes fraudulent misrepresentation?<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">What constitutes fraudulent intent under the law of misrepresentation?<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Judgment_of_Derry_v_Peek\"><\/span><span style=\"color: #993300;\"><b>Judgment of Derry v Peek<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-weight: 400;\">The case examined the principles of fraudulent misrepresentation and the requisite intent to establish liability.<\/span><\/p><p><span style=\"font-weight: 400;\">The court held that fraud requires a false statement to be made knowingly, without belief in its truth, or recklessly, without caring whether it is true or false. Honest belief, even if mistaken, negates fraudulent intent and does not constitute fraud. The defendant&#8217;s statement in the prospectus, though incorrect, was made in the honest belief that government approval was assured.<\/span><\/p><p><span style=\"font-weight: 400;\">The House of Lords ruled in favor of the defendants, dismissing the claim of fraudulent misrepresentation. Lord Herschell stated, \u201cTo sustain an action for deceit, there must be proof of fraud, and nothing short of that will suffice.\u201d<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>This case established the principle that liability for fraudulent misrepresentation arises only when a false statement is made knowingly, without belief in its truth, or recklessly, without caring whether it is true or false.<\/p>\n","protected":false},"author":3,"featured_media":3798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[10],"tags":[],"class_list":["post-3796","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-torts-law"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts\/3796","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/comments?post=3796"}],"version-history":[{"count":8,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts\/3796\/revisions"}],"predecessor-version":[{"id":4208,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/posts\/3796\/revisions\/4208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/media\/3798"}],"wp:attachment":[{"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/media?parent=3796"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/categories?post=3796"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fawyerz.in\/judgments\/wp-json\/wp\/v2\/tags?post=3796"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}