COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE QUEEN'S BENCH DIVISION
The Hon Mr Justice Jack
[2004] EWCH 1101 (QB)
Strand, London, WC2A 2LL |
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B e f o r e :
LORD JUSTICE JONATHAN PARKER
and
LADY JUSTICE SMITH DBE
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TAYLOR LYNNE THOMSON |
Claimant/ Respondent |
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- and - |
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CHRISTIE MANSON & WOODS LIMITED CHRISTIE'S FINE ART SECURITY SERVICES LIMITED DAVID GEORGE PHILIP CHOLMONDELEY, 7TH MARQUESS OF CHOLMONDELEY |
Defendants/ Appellants |
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Smith Bernal Wordwave Limited, 190 Fleet Street
London EC4A 2AG
Tel No: 020 7421 4040, Fax No: 020 7831 8838
Official Shorthand Writers to the Court)
Lord Grabiner QC; David Kitchin QC; Paul Greenwood (instructed by Herbert Smith) for the Respondent
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Crown Copyright ©
Lord Justice May:
Introduction
i) the judge, having correctly found that they were not negligent in their cataloguing, was wrong and inconsistent to find them in breach of any duty owed to Ms Thomson; andii) the judge was wrong in his finding as to the measure of damages.
Ms Thomson, although forensically content with the judge's conclusion, contends that
iii) the judge was wrong not to find that the vases were made in the 19th century; or
iv) the judge should at least have held that Christie's should have qualified their catalogue entry for the vases to describe them as "probably Louis XV" or by some such qualification.
The Houghton Vases
The catalogue
"A PAIR OF LOUIS XV PORPHYRY AND GILT-BRONZE TWO-HANDLED VASES designed by Ennemond-Alexandre Petitot"
The provenance was stated as "acquired by [Lord Cholmondeley's grandmother] before 1921". There followed quite a long essay about Petitot and Philip, Duke of Parma. This is quoted in full in paragraph 39 of the judgment. It stated that the vases were "designed by" Petitot either for his patron Philip, Duke of Parma, who was Louis XV's son in law, or for one of his leading courtiers. There is a brief biography of Petitot. He was said to be responsible for introducing neo-classicism to Parma. There is a reference to the Suite des Vases of 1764 and its Bossi engravings, to the vases in the Getty museum and to a third pair in a private collection in Greece.
Ms Thomson and Mr Cooney
"At the viewing Mr Cooney showed Ms Thomson the Urns and praised their high quality. He drew Ms Thomson's attention to the quality of the gilding on the lions and serpents which he described as marvellous. He said that the chasing of the Urns was equally marvellous and the patina was equally fine. He explained that the quality of the work reflected the superb craftsmanship of the 18th century which he described to Ms Thomson as a "lost art". Mr Cooney also told Ms Thomson that a very similar pair of Urns were in the Getty museum in California and that the Urns were of a similar museum quality."
The gist of this was admitted in Christie's defence. The judge said in paragraph 50 of his judgment:
"The gist was that Mr Cooney spoke very highly of the quality of the urns as examples of 18th century craftsmanship, and did not suggest that there was anything other than certainty that they were what they were described to be. He also said in evidence that he thought that he had said that the urns were by far the best item in the sale that she had looked at, and that it was better to buy one big thing than a number of smaller items. He said he tried to give her all the information he could. For her part Ms Thomson said that she would not have made the purchase without expert advice because she did not have the understanding to make an informed decision, and that she looked to Mr Cooney together with what was in the catalogue for that."
Duty of care
Events after the sale
The Proceedings
(a) the circular plate attached to the underside of the bases to receive the bolt going through the base of the mount. The plate and its collar were attached by brazing. The evidence supported forge brazing rather than torch brazing, consistent with 18th century manufacture and with 19th century manufacture (paragraph 136).(b) M. Moreira and Mr Bourne considered that the manner in which the liners are constructed (described in paragraphs 137-139) confirmed an 18th century date. If they had been made in the second half of the 19th century they would have been shaped by compression, perhaps using a steam hammer. The liners of the admittedly 19th century Paris vases appeared to have been made in this way. The contrast was striking, but not determinative.
(c) the evidence was inconclusive about whether the bronze sheet from which the liners were made was cast or rolled, but probability favoured casting. Rolled brass was only available in the 19th century. The judge reviewed the differences of opinion here in paragraphs 141 and 142.
Metallurgical evidence
The judge's conclusion as to date
"The following matters speak strongly in favour of an 18th century date:
a) I accept that the chasing and pouncing have the signature of circa 1765 rather than of revivalist work. I am satisfied that when he saw the urns M. Moreira had no doubt about that, and I respect his skill and experience. He is a man who has spent his life working with such objects. M. Moreira was supported by Mr Bourne, who impressed me with his knowledge and as a careful expert witness.
b) The use of mercury gilding on all parts save the liners. If mercury gilding was used to create an 18th century effect in the 19th century, it would surely have been used on the whole ensemble rather than electro-plating the liners and so revealing the actual date. This suggests that the electro-plate was not original. In view of the tests on the liners to establish whether or not there was an original mercury gilding, the probability is that the liners were left ungilded following manufacture. I do not find that surprising. The surface area of the liners is comparatively large and only a small part is visible unless one looks down into them. It seems to me that they may well have been left as polished bronze, and perhaps lacquered, that is varnished, to preserve the shine, as was often done. [considerations relating to the gilding of the liners of the Getty and Greek vases do not] over-ride my conclusion that the gilding of the liners actually supports an earlier date for the urns.
c) If the electro-plate gilt is original, it is extraordinary that the repair inserted into the liner was done so badly and visible solder was left at a number of points. All this shows that the repair was subsequent of the manufacture. The strong probability is that the repairs consisting of the insertion of a new piece and the addition of patches of solder to smooth the surface were done at the same time as the electro-plating, perhaps by a workshop whose speciality was electro-plating rather than bronze working.
d) I have concluded that the porphyry is substantially more likely to have been worked in the 18th century than later. This also dates the whole.
The main arguments for a date sometime after the mid-nineteenth century are those relating to electro-gilding, blow torch brazing and the metallurgical analyses. I do not think that any of these points can be brushed aside. They are matters which raise uncertainty. I have taken the various metallurgical aspects individually. There is nothing in them that supports an 18th century date; they are all points against it. Taken together they carry more weight than individually, rather on the basis that a horse is more likely to fall if it has to clear six jumps than one.
I conclude that in particular the factors which I have just listed in favour of an 18th century date outweigh those which are against it. I cannot be certain that the Houghton urns were made around 1760 to 1765, but I think that it is likely. The evidence establishes the position somewhere between certainty and more likely than not. If a figure must be placed on it, I would put it in the region of 70 per cent. I am of this view after having reviewed and reconsidered all the evidence and submissions which I have heard."
Breach of duty
"It is well-established practice of auction houses and the art world generally to date items such as the Houghton urns by visual examination in conjunction with such information as to the item as may be already available or obtainable by such research as is reasonably to be expected of the auction house in the circumstances. The examination must be as thorough as the circumstances reasonably require and it must be done by persons of appropriate qualifications and experience. It will not, cannot, and need not be as exhaustive as the examinations which have been carried out for the purposes of this trial: that is impractical. The outcome will be an expression of opinion as to date, which may be expressed in absolute terms such as here, or in more guarded terms, using words such as "probably" or "possibly". Where it is expressed in absolute terms it remains nonetheless an expression of opinion, which may later be shown to be doubtful or wrong. That is the basis on which the market proceeds, and that is generally well-understood.
It is difficult to define the degree of certainty which an auctioneer should have before he ascribes a date without qualification, and it is probably unnecessary for me to try to do so. It may be whether, having reviewed all factors, he finds he has a sufficient positive basis for the view he has formed combined with an absence of matters which raise a real rather than a fanciful doubt by pointing another way."
"(1) The 18th/19th century problem arising from copies and imitations: this is a reason for care; it does not preclude the identification of a decorative object as 18th century by means of its visual features.
(2) Lack of provenance: this is very common, but is a reason for caution.
(3) Electrogilding of the liners: Christie's did not observe this, nor did M. Moreira when he first saw the urns, even though Mr Bourne said that it was obvious; but even if it had been spotted, Christie's could have concluded that it was a re-gilding, perhaps following the repair to one liner. They did not then know that the Getty and Greek urn liners probably had also been electro-gilded.
(4) There were a number of unusual features the proportion of gilding to porphyry, the use of scagliola, the use of liners, the lack of comparable design: these points largely arise from Petitot's design.
(5) The finish of the porphyry and the quality of the chasing: I refer to what I have already said.
(6) The features of the design: it was an 18th century design; I do not find Mr Paterson's point as to the portrayal of the lions being typical of the 19th century persuasive.
(7) Casting and chasing: I refer to what I have already said.
(8) Gillian Wilson's view: she gave a date to the Getty urns of 1765 to 1770, which in so far as it is relevant to the Houghton urns supports Christie's on date. Her uncertainty as to where they were made does not reflect on the date.
(9) The existence of 19th century vases after the Petitot design: these were identified as 19th century, which might encourage Christie's in distinguishing them and confirming their own dating.
(10) The comparison with the Getty urns made by Christie's was by photograph only. This was a reason for Christie's not to rely on the Getty dating of its urns: for without a full comparison Christie's could not know how similar the two pairs were and so whether they could draw any support at all for their dating. Christie's were entitled to conclude from the Getty literature and the correspondence only that there was another pair of similar urns which had been dated 1765 to 1770 by an institution of high repute and expertise. If Christie's concluded independently that the Houghton urns were also of that date, they could find some confirmation and encouragement in the Getty dating of their urns because the Getty dating strongly suggested that urns to Petitot's design were made in the 18th century.
(11) The Bossi engraving: I refer to what I have already said about this aspect."
"Mr Bourne was confident in his opinion that the urns were approximately contemporary with the Bossi engraving, and he was supported by M. Moreira, a man of greater expertise in some aspects. I do not think that they were negligent in how they reached that conclusion. It was one which they and an auction house such as Christie's could come to consistently with the exercise of the skill to be expected of an auctioneer of Christie's standing. Mr Bourne and M. Moreira considered the points on which Ms Thomson relies, and they had reasons for rejecting them which were reasonable.
I conclude that Christie's dating of the urns as Louis XV without qualification was an opinion which an auctioneer of their standing could reasonably reach, and that there was no breach of duty on their part in that regard."
"As Christie's knew, Ms Thomson was not taking any independent advice since she was looking to them. Christie's knew that this was a new field to her and that she had never made a comparable purchase before. Christie's took upon themselves to inform Ms Thomson through Mr Cooney of the very high quality of the urns as examples of the period, plainly with the object of encouraging her to bid for them. Christie's gave what was in the circumstances an incomplete picture and Ms Thomson was entitled to a fuller one I am, however satisfied that the circumstances required them to tell her that the dating of objects in this area was an unusually difficult one because of the copies and imitations of 18th century items which were made in the Second Empire and following, and of the risk that this entailed. Ms Thomson should have been told that Christie's were relying very largely simply upon the exercise of their judgment following visual inspection. She should have been told that the catalogue inflated what could properly be said about the urns and was likely to give a misleading impression about Christie's knowledge and the sureness of their judgment. The circumstances require that Ms Thomson be told the risk she ran in paying a large sum for the urns."
Grounds of Appeal and submissions
(1) the judge found in Ms Thomson's favour, although he rejected her pleaded case in its entirety. She alleged that the vases were made in the 19th century and that Christie's were negligent in describing them as Louis XV without qualification. The judge held that the vases were made in the 18th century and that it was reasonable for Christie's so to describe them without qualification. This should have resulted in the judge dismissing her claim. He found in her favour only by reformulating her case in a way that was not even argued at trial.(2) The successful reformulated claim was unsupported by the evidence. Christie's were confident in their unqualified dating of the vases. The judge found that their opinion was correct and reasonably held. He also found that Christie's had no reason to know of any contrary opinion. The judge nevertheless held them negligent for not warning Ms Thomson about the possible existence of opinions different from theirs. This is a very peculiar result. It is even more peculiar when the judge held that she was entitled to substantial damages, although she got what she was paying for and paid no more than the open market price.
(3) The judge's decision turned a professional obligation to exercise skill and care in stating an opinion into an insurance obligation against the possible existence of contrary opinions.
(1) The existence of a 19th century revivalist fashion was a reason for caution, but not, on the facts of the present case, for doubt. The judge had himself so held in rejecting the first of Ms Thomson's eleven reasons for doubt in paragraph 192(1) of his judgment. This finding was fully supported by the evidence, particularly that of Mr Bourne. The relevant part of paragraph 197 is unjustifiably inconsistent with this. The point was not put to either Mr Cooney or Mr Bourne. There was no evidence that the existence of the revivalist fashion made dating 18th century objects unusually difficult.(2) It is obvious to any buyer, whether expert or not, that attributions as to date and views as to quality are matters of opinion and judgment. Christie's were under no duty to express the tautological platitude that their confident unqualified opinion was nevertheless an opinion. Mr Sumption referred here to Luxmoore-May v. Messenger May Baverstock at 1020F and Harlingdon Enterprises v. Christopher Hull Fine Art Ltd [1991] 1 QB 564 at 577E. Ms Thomson's complaint was, not that she was not told that Christie's were just expressing their opinion, but that there were serious reasons for not giving that opinion. She did not expect to be told of the process by which Christie's reached their opinion. There was no basis for the judge's conclusion that Ms Thomson should have been told that the opinion depended largely on visual inspection.
(3) As to the judge's view that the catalogue unjustifiably inflated what could properly be said about the vases, the points made were insubstantial and did not affect Christie's confident unqualified opinion as to the dating and quality of the vases. None of the matters in paragraph 195 of the judgment "possibly Italian", "designed by Petitot for the Duke of Parma", "reworked by Petitot" created a misleading impression of the sureness of Christie's judgment. They were sure for other reasons, and were supported in that by Mr Bourne, whose evidence the judge accepted. None of these matters were said to have been material to Ms Thomson's decision to bid. None of them affected the value of the vases. The case was that the catalogue entry was wrong because the vases were made in the 19th century. There was no doubt as to the museum quality of the Houghton vases as the existence of the Getty vases demonstrated.
"It is only when a judge can be satisfied that the body of expert opinion cannot be logically supported at all that such opinion will not provide the bench-mark by reference to which the defendant's conduct falls to be assessed."
By this standard, Ms Thomson would not establish that Christie's were negligent, even if there were evidence, persuasive if taken alone, contrary to that of Christie's experts. In fact, there was no such persuasive evidence.
(1) the 18th century database which Dr Northover used for comparison consisted of 22 samples from only 7 objects. This could not begin to show that brass with other characteristics was not made during the period.(2) the reference points for Dr Northover's opinion about copper impurity were a study of 19 French guns (1750-1810) and one 1857 boiler tube from a British steam engine. These were an entirely insecure guide to copper used in foundries making decorative brass.
(3) the 18th century Flemish and Dutch instruments produced by Dr Northover showed impurities at a low level.
(4) without secure information about the sources of copper and the process by which brass was made in 18th century France, it could not be concluded that low impurity levels in the copper were unusual for the 18th century.
(5) no comparative conclusion about zinc content could be drawn from Dr Northover's database. He had not made any study of the methods of brass manufacture in 18th century France.
(6) Dr Northover's 1999 and 2000 reports were not consistent with his reports to the court nor the confidence with which he expressed his conclusions.
(7) Dr Northover was a good deal more confident in his conclusion than the logical consideration of the available data justified.
(8) whatever its weight, the metallurgical evidence was no more than one factor in an overall assessment.
Discussion
"A negligence claim is habitually analysed compartmentally by asking whether there was (a) a duty of care; (b) breach of that duty and (c) damage caused by the breach of duty. But damage is the essence of a cause of action in negligence and the critical question in a particular case is the composite one, that is whether the scope of the duty of care in the circumstances of the case is such as to embrace damage of the kind which the plaintiff claims to have suffered. As Lord Bridge of Harwich said in the Caparo case [1990] 2 AC 605, 627; "it is never sufficient to ask simply whether A owes B a duty of care. It is always necessary to determine the scope of the duty by reference to the kind of damage from which A must take care to save B harmless." Lord Oliver of Aylmerton emphasised the same point in Murphy v. Brentwood District Council [1991] 1 AC 398, 486 when he said:
"The essential question which has to be asked in every case, given that damage which is the essential ingredient of the action has occurred, is whether the relationship between the plaintiff and the defendant is such that it imposes upon the latter a duty to take care to avoid or prevent that loss which has in fact been sustained."
This question necessarily subsumes the question whether the acts or omissions of the defendant caused the damage relied on."
The converse of this is that the measure of damage has to relate to the duty of care and its breach.
"Rules which make the wrongdoer liable for all the consequences of his wrongful conduct are exceptional and need to be justified by some special policy. Normally the law limits liability to those consequences which are attributable to that which made the act wrongful. In the case of liability in negligence for providing inaccurate information, this would mean liability for the consequences of the information being inaccurate."
The loss must have a sufficient causal or connection with the subject matter of the duty (page 214B). A claimant has to prove both that he has suffered loss and that the loss falls within the scope of the duty (page 218B).
"I think that one can to some extent generalise the principle upon which this response depends. It is that a person under a duty to take reasonable care to provide information on which someone else will decide upon a course of action is, if negligent, not generally regarded as responsible for all the consequences of that course of action. He is responsible only for the consequences of the information being wrong. A duty of care which imposes upon the informant responsibility for losses which would have occurred even if the information which he gave had been correct is not in my view fair and reasonable as between the parties. It is therefore inappropriate either as an implied term of a contract or as a tortious duty arising from the relationship between them.
The principle thus stated distinguishes between a duty to provide information for the purpose of enabling someone else to decide upon a course of action and a duty to advise someone as to what course of action he should take. If the duty is to advise whether or not a course of action should be taken, the adviser must take reasonable care to consider all the potential consequences of that course of action. If he is negligent, he will therefore be responsible for all the foreseeable loss which is a consequence of that course of action having been taken. If his duty is only to supply information, he must take reasonable care to ensure that the information is correct and, if he is negligent, will be responsible for all the foreseeable consequences of the information being wrong."
At page 216D, he contrasted this with the measure of damage where the defendant warrants that his information is accurate.
"The measure of damages in an action for breach of a duty to take care to provide accurate information must also be distinguished from the measure of damages for breach of a warranty that the information is accurate. In the case of breach of a duty of care, the measure of damages is the loss attributable to the inaccuracy of the information which the plaintiff has suffered by reason of having entered into the transaction on the assumption that the information was correct. One therefore compares the loss he has actually suffered with what his position would have been if he had not entered into the transaction and asks what element of this loss is attributable to the inaccuracy of the information. In the case of a warranty, one compares the plaintiff's position as a result of entering into the transaction with what it would have been if the information had been accurate. Both measures are concerned with the consequences of the inaccuracy of the information but the tort measure is the extent to which the plaintiff is worse off because the information was wrong whereas the warranty measure is the extent to which he would have been better off if the information had been right."
" such general rule is not to be inflexibly implied where to do so would prevent him obtaining full compensation for the wrong suffered; (5) although the circumstances in which the general rule should not apply cannot be comprehensibly stated, it will normally not apply where either (a) the misrepresentation has continued to operate after to the date of the acquisition of the asset so as to induce the plaintiff to retain the asset or (b) the circumstances of the case are such that the plaintiff is, by reason of the fraud, locked into the property."
None of this applies in the present case. It is not a fraud case. The assumed misrepresentation did not continue to operate after Ms Thomson acquired the vases. She was not locked in.
Lord Justice Jonathan Parker:
Lady Justice Smith: