One of the Off-take Contracts was with Eston Smelting Ltd (“Eston”). Prior to entering
into this contract, Eston had sought the advice of Metal Market Analysts LLP (“MMA”)
about the terms of the contract. Annabel Stannum, a member of MMA, had sent the
letter set out at Document D to Hamilton Fletcher, a director of Eston.
It is now clear that the forecasts prepared by Annabel were negligently made. Having
followed the advice in the letter, Eston finds itself to be an unsecured creditor of
Woolyback, having paid large sums in advance for deliveries of tin ore. Woolyback is
not able to deliver the ore; nor does it have the funds to return Eston’s prepayment.
Taking account of lost profits, Eston expects to suffer total losses of over £400,000.
One of the barristers in your chambers has been instructed in relation to this
matter. They have given you the task of preparing the text of an opinion,
addressing who might be potential defendants in relation to any claim brought
by Eston in respect of its losses, together with a brief explanation of the nature
of the cause of action.
You are asked to consider the case of Williams v Natural Life Health Foods [1998] 1 WLR 830 as part of your opinion.
You are not required to consider the merits of the claims themselves.