High Court considers the reflective loss principle in police damages claim (Breeze & Wilson v Chief Constable of Norfolk)

Table of contents

• What are the practical implications of this case?
• What was the background?
• What did the court decide?
• Case details

Article summary

Dispute Resolution analysis: The claimants’ claims for alleged financial losses in excess of £30m arising from the demise of their business following their discontinued prosecution for conspiracy to defraud were struck out by the High Court. The claims were pursued on the basis that, while they were claims for diminution in share value, the so-called Giles v Rhind exception applied, such that the claims were not barred by the usual rule that a shareholder cannot recover for losses which are merely reflective of the company’s loss. The amendments to the claim seeking to place the losses outside the reflective loss principle were not, however, permitted. Written by Charlotte Ventham, junior at 5 Essex Court.