- Derivative claims and principles of reflective loss (Kallakis v AIB Group)
- What are the practical implications of this case?
- What was the background?
- What did the court decide?
- Case details
Dispute Resolution analysis: In considering a wide-ranging application for strike-out/summary judgment by AIB, the court provided useful guidance, including most prominently on the limits and proper approach to derivative actions and the precise parameters of the exception to the reflective loss principle set out in Giles v Rhind. The judgment, while it must be treated with some caution given that the court was only required to consider whether the various arguments had a real prospect of success, will be of interest to practitioners advising their clients in complicated shareholder disputes and in relation to litigation arising from company structures involving trusts, where questions of the capacity to bring claims (and the types of claims which can be so brought) will be of particular significance. Written by Leo Kitchen, senior associate, at Quinn Emanuel Urquhart & Sullivan UK LLP in London.
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