How To Calculate A Quantum Meruit Award
The Court of Appeal decision was reported in Commercial Bulletin no. 71 from December 2010.
Benedetti provided financial advisory services to Sawiris who were looking to buy a subsidiary of a big energy company in Italy. The proposed agreement between them had fallen by the wayside, not least because the eventual deal was very different from that originally envisaged. The Supreme Court had to decide what sums were due to Benedetti by way of quantum meruit for services rendered.
Relevant numbers - the original contract sum was75 million; Mr Benedetti had already been paid67 million (for arguably other services); and, during negotiation, Sawiris offered75.1 million, apparently on top of the67 million, a sum which was rejected by Benedetti as being insufficient. The High Court found that the ordinary market value of the services...
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