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26 March 2026

Court Of Appeal Finds Expert's Determination Not Manifestly In Error

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Herbert Smith Freehills Kramer LLP

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The decision confirms that the general test for "manifest error" applies to questions of contractual interpretation whether or not they involve mathematical formulae.
United States Litigation, Mediation & Arbitration
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The decision confirms that the general test for "manifest error" applies to questions of contractual interpretation whether or not they involve mathematical formulae.

The Court of Appeal has held that an expert's interpretation of a contractual clause that determined a party's share of gains arising from a qualifying transaction was not manifestly in error, overturning an earlier High Court decision: WH Holding Ltd v London Stadium LLP [2026] EWCA Civ 153.

The decision confirms that the test for manifest error requires the court to consider whether the error was "so obvious and obviously capable of affecting the determination as to admit of no difference of opinion". The nature of the issue to be determined does not affect the test. It applies both to questions of contractual interpretation and to the interpretation and application of contractual mathematical formulae.

The decision reinforces the final and binding nature of expert determinations. The English courts will interfere only in exceptional cases, where the expert's decision is so obviously wrong as to be unarguable.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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