The Court of Appeal rejected that contention. The court accepted that, ordinarily, a third party who was misled by Mr Al Sanea's false statements into entering into a transaction would be able to recover all losses flowing from that transaction. But in this case Daiwa was not an ordinary third party; it was in breach of a pre-existing legal duty to Singularis to refrain from making the payments whilst the circumstances put it on inquiry. Accordingly, the court held that, even if Mr Al Sanea's fraud were to be attributed to Singularis (which it was not), Singularis' claim cannot be defeated by an equal and opposite claim in deceit by Daiwa against Singularis.
