Reflective loss reconsidered (Pt 1)

04 July 2019 / Richard Samuel

Issue: 7847 / Categories: Features , Procedure & practice , Damages

In a special two-part NLJ series, Richard Samuel considers the history & likely future of the court’s rulings on shareholder action & reflective loss

The Supreme Court is due to review the rule on reflective loss this year in Sevilleja Garcia v Marex Financial Ltd.
The orthodox view is that the rule as currently formulated in the House of Lords’ decision Johnson v Gore Wood is an inflexible rule of law..
Richard Samuel offers a heterodox view of Johnson as affirming the rule as one of procedure, which should be applied flexibly.

In Prudential Assurance Co Ltd v Newman Industries Ltd (No 2) [1982] Ch 204, [1982] 1 All ER 354 at pp222H–223B, the Court of Appeal first established the rule on reflective loss as a means of imposing structure on out-of-control first instance litigation brought by a company’s shareholders as a combination of derivative action and direct action: ‘In our judgment the personal claim is misconceived … what [the shareholder] cannot do is to recover damages merely because

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

Reflective loss reconsidered (Pt 1)

In a special two-part NLJ series, Richard Samuel considers the history & likely future of the court’s rulings on shareholder action & reflective loss

The Supreme Court is due to review the rule on reflective loss this year in Sevilleja Garcia v Marex Financial Ltd.
The orthodox view is that the rule as currently formulated in the House of Lords’ decision Johnson v Gore Wood is an inflexible rule of law..
Richard Samuel offers a heterodox view of Johnson as affirming the rule as one of procedure, which should be applied flexibly.

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

SourceURL:

Links:

E-newsletter Sign-Up

MOVERS & SHAKERS

Read All

DWF—19 appointments

Belfast team bolstered by three senior hires and 16 further appointments

Cadwalader—Andro Atlaga

Firm strengthens leveraged finance team with London partner hire

Knights—Ella Dodgson & Rebecca Laffan

Double hire marks launch of family team in Leeds

NEWS

Read All

NLJ this week: Fraud claims climb as courts brace for AI threats

Charlie Mercer and Astrid Gillam of Stewarts crunch the numbers on civil fraud claims in the English courts, in this week's NLJ. New data shows civil fraud claims rising steadily since 2014, with the King’s Bench Division overtaking the Commercial Court as the forum of choice for lower-value disputes

NLJ this week: Pro bono power without the red tape

Bea Rossetto of the National Pro Bono Centre makes the case for ‘General Practice Pro Bono’—using core legal skills to deliver life-changing support, without the need for niche expertise—in this week's NLJ

NLJ this week: Traders’ convictions quashed in Libor shock

The Supreme Court issued a landmark judgment in July that overturned the convictions of Tom Hayes and Carlo Palombo, once poster boys of the Libor and Euribor scandal. In NLJ this week, Neil Swift of Peters & Peters considers what the ruling means for financial law enforcement

NLJ this week: Small firms call for tech clarity as AI looms

Small law firms want to embrace technology but feel lost in a maze of jargon, costs and compliance fears, writes Aisling O’Connell of the Solicitors Regulation Authority in this week's NLJ

NLJ this week: Trans pool player loses discrimination fight

Charles Pigott of Mills & Reeve reports on Haynes v Thomson, the first judicial application of the Supreme Court’s For Women Scotland ruling in a discrimination claim, in this week's NLJ

Error message

Reflective loss reconsidered (Pt 1)

MOVERS & SHAKERS

DWF—19 appointments

Cadwalader—Andro Atlaga

Knights—Ella Dodgson & Rebecca Laffan