Loss suffered by AMI
67.It was not disputed that if Mr Dorset had not made his misrepresentations or given the implied warranty, AMI would not have become defendant in the action brought by EMA. I find that the £33,600 paid by AMI to EMA and AMI’s costs of defending that action against EMA are losses caused by the misrepresentation and breach of warranty. Mr Dorset must reimburse those sums to AMI.68.AMI also claimed lost royalties which it would have received from the exploitation of its share of Alright. Had Mr Dorset not made the representation and warranty relied on, there would not have been even a purported assignment to AMI of 25% of the copyright in Alright. AMI would have received no royalties. AMI is not entitled to any damages under this head.